Mining giant Rio Tinto has sold its food packaging unit for $1.2bn to US company Bemis.
Bemis, which makes plastic packaging that grocers use to wrap steaks and cheeses, will pay $1bn in cash for Alcan Packaging Food Americas and a further $200m in shares.
However, Rio's latest move to pay down debt did not help its share price, which was down 7% at £18.84.
"The sale of the Food Americas division is the first significant step in reducing the asset portfolio acquired with Alcan," said Guy Elliott, Rio's chief financial officer. "The transaction represents solid value given the challenging financial environment."
The deal moves Rio closer to the day when it can draw a line under its near-disastrous 2007 acquisition of Canadian aluminum and packaging firm Alcan, which left the miner with $38bn in debt.
