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Mining giant Rio Tinto today moved to shrink its debt mountain by agreeing to sell the majority of its Alcan packaging business.
Australia's biggest packaging group, Amcor, is paying $2 billion (£1.21 billion) for Alcan's drugs and tobacco packaging arms, and its European and Asian food divisions.
It follows the sale last month of Alcan's US packaging arm to American company Bemis for $1.2 billion.
Rio, which has been accused of commercial espionage by the Chinese government, is trying to trim its debts, having forked out $38 billion for the Alcan aluminium business two years ago — just before commodity prices tumbled.
The sale is the latest in a series of moves to shrink its debts. In the last 18 months, the Anglo-Australian group has sold assets worth $6.6 billion. Rio initially turned to a tie-up with China's Chinalco to boost its balance sheet, but was forced to abandon the controversial deal after rising political opposition in Australia.
The miner instead turned to a cash call, tapping investors for $15.2 billion in July — the world's fifth largest rights issue ever. After the cash call, Rio said that its debts would be reduced to $23.2 billion.
Four of its employees are potentially facing up to seven years in a Chinese jail after being arrested last month on suspicion of bribery and stealing trade secrets. Rio unveils half year results on Thursday.
