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Alcoa/BHP merge units
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August 20, 2001: 12:48 p.m. ET
World's No.1 and No.2 mining firms merge metals distribution businesses
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NEW YORK (CNNfn) - Rivals Alcoa Inc. and BHP Billiton agreed Monday to combine their metals distribution units, creating a combined firm with over $2 billion in revenue.
Pittsburgh-based Alcoa (AA: up $0.98 to $37.67, Research, Estimates) and Melbourne, Australia-based BHP each will own 50 percent of the as yet unnamed company. The merger still must receive regulatory approvals and is expected to close in October, the companies said.
The new independent firm will consist of Alcoa's Reynolds Aluminum Supply Co. and BHP's North American metals distribution group (NAMD), which is known as Vincent Metals Goods in the U.S. and Atlas Ideal Metals in Canada.
"We expect to find opportunities to leverage technologies and synergies in processing equipment, information systems, engineering, technical support and the expertise of our combined workforces," said Harry Jones, who will serve as CEO of the new company. Jones currently is head of NAMD.
BHP acquired NAMD last October as part of its Rio Algom purchase.
In March, BHP Ltd. merged with Britain's Billiton PLC, creating the world's second-largest mining concern by market value. BHP-Billiton (BHP: down $0.45 to $9.75, Research, Estimates), with a $28 billion market capitalization, trails aluminum producer Alcoa, which is the world's largest mining company. 
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