Australian packaging group Amcor Ltd on Tuesday agreed to pay USD 2.03 billion for the majority of Rio Tinto's Alcan Packaging business, marking its biggest-ever acquisition.

Amcor will acquire Alcan Packaging from Anglo-Australian mining giant Rio Tinto, including global pharmaceuticals, tobacco and European and Asian food divisions. The assets being acquired encompass operations in 28 countries and about 14,000 employees. The deal will reportedly transform Amcor into one of the world's largest packaging companies.
To fund the offer, Amcor will issue shares and take on debt amounting to USD 1.3 billion. Completion of the acquisition will depend upon regulatory approval in the U.S. and Europe, the companies said.
Rio Tinto bought Alcan in 2007, but built up significant debts to help fund the USD-38-billion deal. The company seeks to ease its debt burden with the sale. (pi)