Sweden's Hydro offers $345m for Rio Tinto's aluminium assets

Hydro has offered to buy the miner's ISAL smelter in Iceland, its 53.3% share in the Aluchemie anode plant in the Netherlands and its 50% stake in the aluminium fluoride plant in Sweden.

Subject to the satisfactory completion of consultations with employees, relevant European works councils and other stakeholders, Rio expects to conclude the sale in the second quarter of this year.

Chief executive Alf Barrios said: "The binding offer for the sale of these assets provides further evidence of Rio Tinto's commitment to strengthen our business and deliver value by streamlining our portfolio.

"Hydro has a solid track record in the aluminium industry and is a partner to Rio Tinto in other ventures. ISAL, Aluchemie and Alufluor are a natural fit with Hydro's portfolio and this transaction should secure the long term future for the sites and continued economic benefit for the wider communities."

At 1020 GMT, the shares were up 0.7% to 4,029p.