Diversified mining giant Rio Tinto has received an offer for its talc business from French minerals group Imerys, which is valuing the unit at $340 million. The deal is subject to regulatory approval.
Rio Tinto, through its talc unit Luzenac, produces about a quarter of the global supply of talc, which is used in talcum powder as well as ceramics, animal feed and cosmetics. The business has about 1,000 employees at 24 locations in Europe, North America, Australia and Asia.
“The successful sale of our global talc business would deliver good value to our shareholders and remains aligned with our strategic focus on large scale assets,” said Guy Elliott, Rio’s chief financial officer. “As a leading supplier of industrial minerals, Imerys is well positioned to enable the ongoing success of the talc business.”
Rio has raised over $11 billion since 2008 through its asset sales program, completing more than 18 divestments.