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Kiwi Grabs Alcoa Packaging Arm


THE shake-up of the world’s mining industry continued this weekend when Alcoa, the aluminium group, agreed to sell its packaging business to a privately-held New Zealand company.

Rank Group, owned by Kiwi entrepreneur Graeme Hart, will pay $2.7 billion (£1.4 billion) for the Alcoa division. Hart, who started his working life with jobs as a tow-truck driver and panel beater, has assembled an international group of packaging, paper and food businesses through a string of rapid acquisitions.

For Alcoa, the deal is the sequel to its failure to secure a larger transaction earlier in the year. Chief executive Alain Belda tried to engineer a merger with rival Alcan, a deal that would have created a dominant player in world aluminium. But he was outbid by Rio Tinto. The diversified mining giant — itself now the target of a bid by BHP Billiton — paid $38 billion for Alcan, 40% more than Alcoa was offering.

Meanwhile, Marius Kloppers, chief executive of BHP, is mulling his next move after the Takeover Panel issued a deadline of February 6 to make a formal offer for Rio.

City sources said one option being seriously considered was for BHP to make a hostile bid — but without increasing its price. It has already offered three BHP shares for each Rio share, valuing Rio at $130 billion.

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