Rio Tinto offered $38.1 billion for Alcan on July 12. It's a better offer than its rival Aloca's $28 billion bid. The proposed merger would create the world largest aluminum company.
Rio's offer of $101 per share is a 32% premium over the current share price of $76.03. Alcan's board of directors unanimously recommended that the shareholders accept the cash offer.
The new company, to be called Rio Tinto Alcan, would be based in Montreal and headed by Dick Evans, the current CEO of Alcan.
Rio Tinto employs 36,300 while Alcan employs 68,000.