Over two years in the works, Rio Tinto has finally completed the sale of the packaging portion of Alcan to Amcor.

More from The New York Times Deal Book:

"Rio Tinto said Tuesday has completed the almost $2 billion sale of some divisions of its Alcan business to Amcor, taking another step toward cutting its debt load.

The London-based mining giant announced in December it would accept Australian packaging company Amcor’s offer to buy Alcan Packaging’s pharmaceuticals, tobacco and food divisions in Europe and Asia, The Associated Press writes.

Rio Tinto has sold some $10.3 billion in assets since February 2008 to help pay off significant debt it built up buying Canadian aluminum giant Alcan for $38 billion in 2007. Selling non-core Alcan assets, such as the packaging operation, has been a key part of the debt strategy.

”The completion of this complex transaction is another significant step in the recapitalization of our balance sheet,” Rio Tinto’s chief financial officer Guy Elliott said in a statement."

How does this relate to wine packaging? Alcan, producers of Stelvin, is one of the leading wine screw cap manufacturers in the world.

Full press release from Rio Tinto:

Rio Tinto completes sale of majority of Alcan Packaging businesses to Amcor for US$1,948 million

Rio Tinto announced today that it completed the sale of Alcan Packaging global Pharmaceuticals, global Tobacco, Food Europe and Food Asia divisions to Amcor for a total consideration of US$1,948 million , on 1 February.

Guy Elliott, chief financial officer, Rio Tinto, said “The completion of this complex transaction is another significant step in the recapitalisation of our balance sheet. Since the start of 2009 we have completed divestments of US$5.6 billion despite a difficult environment created by the global financial crisis. These proceeds, together with the proceeds from our successful rights issues and strong underlying cash flows, provide us with the flexibility to pursue value adding investment opportunities as they arise.”

Rio Tinto announced on 18 August 2009 the receipt of a binding offer from Amcor for these businesses for a total consideration of US$2,025 million. Today’s completion excludes the Alcan Packaging Medical Flexibles operations in the US. The sale of these operations is the subject of an ongoing detailed market review by the US Department of Justice. The consideration has been adjusted to exclude the Medical Flexibles operations and to reflect the actual business performance over the past six months. The final consideration remains subject to certain customary post-close adjustments.

Since February 2008, Rio Tinto has announced asset sales of US$10.3 billion. In 2008, Rio Tinto completed divestments totalling US$3.1 billion. In 2009, Rio Tinto agreed asset sales of US$7.2 billion and completed US$3.6 billion of these. Completed transactions in 2009 include Ningxia (aluminium), Potasio Rio Colorado (potash), Corumbá (iron ore), Jacobs Ranch (coal), Alcan Composites and the Cloud Peak IPO.

Agreed sales yet to complete include Alcan Packaging Food Americas and Maules Creek (Coal & Allied).

Closing consideration represents the initial $2,025 million consideration reduced for the deferred sale of the Medical Flexible business ($65 million), increased for the EBITDA adjustment ($65 million) and reduced for other transaction adjustments, mainly working capital ($77 million).

About Rio Tinto

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.