Parties
Company
Rio Tinto
Company
Giampaolo Group
On July 21, 2023, Rio Tinto, a global mining giant, and Giampaolo Group, a prominent North American metal management company, agreed to form a joint venture focused on manufacturing and marketing recycled aluminium products. This partnership aligns with their commitment to supplying low-carbon aluminium, an essential component in the energy transition.
The deal involved Rio Tinto acquiring a 50% equity stake in Matalco, a subsidiary of Giampaolo Group, for CAD 934 million (US$700 million), subject to standard adjustments. Matalco is a leading producer of recycled aluminium billet and slab products, operating seven facilities in the U.S. and Canada, with an annual production capacity of around 900,000 tonnes.
Under the venture, Giampaolo's subsidiary Triple M Metal will supply recyclable feed, while Matalco’s existing leadership will continue its management. Post-transaction, Rio Tinto will assume the sales and marketing of Matalco’s products.
The joint effort aims to expand the range of high-quality, low-carbon aluminium products Rio Tinto offers, addressing customers' needs to reduce their carbon footprint. It also aims to enhance Matalco’s services to a broader customer base and secure access to low-carbon primary metal for its operations. The venture is expected to cater to over half of the U.S. demand for recycled aluminium by 2028.
Both Rio Tinto’s CEO Jakob Stausholm and Giampaolo Group’s CEO Chris Galifi expressed enthusiasm about the venture, emphasizing their commitment to recycling and a circular economy.
Deal Type
Joint VentureIndustry
OtherTransaction
$ 934,605,000Deal Status
ClosedClosing Date
01 December 2023