Apollo received an agreement for exclusive negotiations in November

The resumption of the factories of Alcan's engineered products (ex-Pechiney) said. At the New York headquarters of Apollo Global Management LP, the investment firm founded in 1990 by Leon Black, there is still the more discretion on the operation. But concordant sources, the recovery in 51 of Alcan Engineered Products (EPA) by Apollo on the side of the strategic Fund of investment (ISP), which would be 10, the seller, Rio Tinto, retaining 39, is in the process of finalization. The operation should be signed in May. The price could be close to $ 1.5 billion.

Apollo received an agreement for exclusive negotiations in November. TPG and Carlyle investment fund had examined the record in 2008 prior to abandon the operation. "Rio Tinto is determined to divest of transformation of Alcan have cyclic results, says a former Executive of Pechiney.". The last issue remains that of guarantees of employment, including in the United States, knowing that the Government had asked for Alcan to maintain the jobs for ten years in France. "Today, EPA has approximately 11,000 employees with a turnover of EUR 3 billion approximately.

Is a veteran of the Pechiney group, former General Director Deputy of Lagardère Media from 2000 to 2005, which is negotiating the resumption of EPA on behalf of the firm by Leon Black. Installed since 2007 in London, where he is the senior partner of Apollo Investment Fund, Jean-Luc Allavena had been called by Pechiney as CFO of Techpack in 1991, prior to becoming President when 80 of this package by the metallurgical group subsidiary in 1997. Once the transaction is signed, Apollo should request to Rio Tinto, still owner of the name Pechiney, the reselling him. A first step to "recreate a French champion", according to the artisans of the agreement.

Strategic assets

For the American financier Leon Black, ex-transfuge of Drexel Burnham which had resumed the portfolio of Executive Life at Credit Lyonnais, it is an opportunity to make its first investment in France by leveraging its expertise in the transformation of raw materials. The objective of the investment firm, which has $ 50 billion of assets under management, is to regain control of 15 major AEP plants (formerly Pechiney) in Europe, and the plant in Ravenswood, Virginia, in the United States, which provides Boeing and Airbus aircraft sheet and lithium alloys. Regarded as a strategic asset, the Ravenswood plant, single investment of Alcan in the United States, was acquired by Philippe Varin, where he was responsible for the processing in Pechiney.

Apollo, who already control the Metal USA distribution company in the United States and a hedge fund specialized in metals, the resumption of Alcan is a way to use his knowledge of the sector, even if its investments remain partitioned. The firm of Leon Black also provided funding of $ 500 million to the American manufacturer of aluminium Aleris, under Chapter 11 in February 2009, for a resumption of the society. Apollo has launched a few days ago the last partial stock of Metals USA and Noranda aluminum, a group bought the Canadian minor for 1.2 billion five years ago.