The Rio Tinto Ltd (ASX: RIO) share price is on the move on Monday.
At the time of writing, the mining giant's shares are down slightly to $116.56.
What's going on with the Rio Tinto share price?
The Rio Tinto share price is falling on Monday despite the announcement of a new acquisition.
According to the release, Rio Tinto and Giampaolo Group have entered into an agreement to form a joint venture to manufacture and market recycled aluminium products.
Giampaolo Group is one of North America's largest fully-integrated metal management businesses.
The release notes that the transaction reflects the joint venture partners' shared commitment to meeting the increasing demand for low-carbon aluminium as a key material in the energy transition.
Under the terms of the agreement, Rio Tinto will acquire a 50% equity stake in Giampaolo Group's wholly-owned Matalco business for US$700 million (A$1 billion), subject to usual closing adjustments.
Matalco is a leading producer of high-quality recycled aluminium billet and slab products. It has six facilities in the United States and one in Canada, with the capacity to produce approximately 900,000 tonnes of recycled aluminium per annum.
Management commentary
Management believes the joint venture will allow the miner to provide a broader range of high-quality and low-carbon, primary, recycled, and blended aluminium products, at a time when customers are looking for solutions to lower their carbon footprint.
Rio Tinto's Chief Executive, Jakob Stausholm, said:
Investing in recycling is part of our drive to find better ways to deliver the low-carbon materials the world needs and provides a natural extension of our industry leading primary aluminium business. We look forward to providing customers with aluminium solutions that meet their needs for low-carbon primary and recycled materials in partnership with Giampaolo Group a leader in providing recycled material in North America.
