Alcan is not a done deal, but a small unit of it was agreed to be sold yesterday.

The Vlissingen smelter, which is located in the Netherlands and owned by Alcan, will be sold to the British private equity firm Klesch & Co. The deal has been agreed upon by both companies. The specifics of the deal, including the value of it, were not disclosed. However, it is expected to close sometime this summer.

Alcan, the Canadian aluminum manufacturer, is being watched closely as it may be the subject of a very lucrative sale. Its US-based competitor, Alcoa, already made a bid for it, but it was rejected as being too low.

Alcan Inc. has reached an agreement in principle to sell the Vlissingen smelter in the Netherlands to British private equity firm Klesch & Co.

Financial specifics were not disclosed Thursday. The 700-employee smelter, with capacity of 200,000 tonnes annually and 2006 revenue of US$600 million, is owned 85 per cent by Alcan and 15 per cent by Hunter Douglas.

(Continue reading this story on CBC News)

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