The deal adds capacity of 270,000 tonnes per year of aluminium to Liberty House, which is part of British group GFG Alliance - the investment vehicle owned by entrepreneur Sanjeev Gupta.
The binding conditional offer for $500 million is “subject to final adjustments,” Rio Tinto said.
The offer marks the start of a major expansion into continental Europe with ambitious plans to invest €2 billion ($2.38 billion) and develop the 570-worker plant in France, Liberty said in a release.
It also falls in line with the company's strategy to become a major aluminium market participant
amid bullish views on the price outlook of the metal.
The price of aluminium for delivery in three months was recently at $2,180 per tonne on the London Metal Exchange, up sharply...