Alcan Inc has agreed to sell its ferroalloy business to Spain's Ferroatlantica SL for more than 100 million euros ($136.3 million or C$164.2 Canadian), the world's second biggest aluminium producer said on Thursday. The planned sale of Pechiney Electrometallurgie to the unlisted Spanish ferroalloys and electrical power producer is the second disposal announced by Alcan this week. The Canadian company is offloading non-core assets acquired when it took over French rival Pechiney late last year.

"This agreement is compelling for Alcan and consistent with our strategy of focusing on primary aluminium and divesting non-core activities," said Cynthia Carroll, president and chief executive of Alcan's primary metal group.

The transaction, which still needs to be discussed with employees and get regulatory approvals, is expected to close in the second quarter of this year, Alcan said.

Ferroatlantica confirmed last week that it was in advanced talks with Alcan about Pechiney Electrometallurgie, which has 10 ferroalloy works in France that produce silicon, ferro-silicon and calcium metal and silicide.

Alcan announced on Wednesday that it had agreed to sell its stake in Aluminium de Grece to Greek industrial group Mytilineos Holdings.

Copyright Reuters, 2005