Alcan's Offer for Pechiney Cleared by the Competition Bureau

OTTAWA, October 14, 2003 — The Competition Bureau has completed its review of Alcan Inc.'s proposed acquisition of Pechiney. After a thorough review, the Bureau has concluded that the acquisition, combined with the commitments made by Alcan outlined below, will not likely result in a substantial lessening or prevention of competition. The geographic markets examined were primarily North American, with the exception of aluminium production technology, which is a global market. While Alcan has extensive assets in Canada, Pechiney does not control any physical assets in Canada that overlap with those of Alcan.

The Bureau cooperated closely with the United States Department of Justice and the Merger Task Force of the European Commission in its review of the transaction.

In order to resolve competition concerns raised by the United States Department of Justice and the European Commission, Alcan has agreed to divest Pechiney's aluminium rolling facility in Ravenswood, West Virginia, and other rolling mills in Europe. It has also made commitments to the European Commission in relation to alumina refining technology, aluminium smelter cell technology and anode baking furnace designs. These measures will preserve competitive options for Canadian customers as well.

The Competition Bureau is an independent law enforcement agency that ensures all Canadians enjoy the benefits of a fair and competitive economy, low prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

For media enquiries, please contact:
Tim Weil
Director of Strategic Communications
Communications Branch
819-953-9271

For general enquiries, please contact:
Information Centre
Competition Bureau
819-997-4282
1-800-348-5358