The long-awaited merger between Montreal-based Alcan Aluminum and the Alusuisse Lonza Group (Algroup) of Switzerland has been completed, with both companies agreeing to an exchange of shares.
The original proposal was for a 3-way merger of Alcan, Algroup and Pechiney. (Pechiney, a Paris-based aluminum company, had sales of 10.9 billion in 1998.)
Talks of a merger began in June 1999, but Pechiney withdrew in the spring of 2000, under pressure from the European Union. The 3-way deal would have created the largest aluminum company in the world.
The 2-way deal results in a US$12.4-billion company with operations in both the aluminum and packaging industries. Algroup is a global leader in flexible and speciality packaging.
The new Alcan will be in position to take advantage of the fragmented aluminum industry. In May, Richmond, Va.-based Reynolds Metals merged with fellow U.S. aluminum giant Alcoa, only 10 months after Alcoa swallowed Alumax, a mid-tier Norcross, Ga.-based company.
Alcan hopes the merger will keep it competitive.
“Our customer focus, our technologies, our skills, our reputation and our track record will make us the preferred global-solutions provider to our customers,” says Alcan President Jacques Bougie.
The company has eight bauxite mines in six countries containing 400 million tonnes of reserves, and employs 53,000 people.
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