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PITTSBURGH--May 3, 2000--
Alcoa Inc. and Reynolds Metals Company announced today that the U.S.
Department of Justice and the European Union have approved their
proposed merger and that the merger has been completed. Reynolds
shareholders had already approved the merger on February 11.
The merger adds impressive strengths to Alcoa's worldwide operations,
including the Reynolds brand name, its packaging and consumer products
businesses, smelting operations, manufacturing operations serving the
construction and transportation markets, and bauxite reserves in Brazil,
Guyana and Guinea.
Under the terms of a consent decree entered into with the DOJ and an
undertaking agreed with the EU, Alcoa will sell a 25% interest in
Reynolds' Longview, Washington aluminum smelter, as well as Reynolds'
interest in three alumina refineries: Worsley, Australia (56% owned);
Stade, Germany (50% owned); and Sherwin, Texas (100% owned).
Three of Reynolds four global business units will be fully merged with
» Packaging and Consumer business (1999 revenue of $1.45 billion);
» Construction and Distribution business (1999 revenue of $1.02
» Transportation business (1999 revenue of $400 million).
In addition, from Reynolds Base Materials business, approximately one
million metric tons of smelting capacity, bauxite reserves and two
petroleum coke plants will be merged into Alcoa.
"We are extremely pleased to complete this merger and welcome Reynolds
employees to Alcoa," said Alcoa President and CEO Alain Belda. "We will
rapidly integrate Reynolds and thereby create additional value for Alcoa
and Reynolds customers and other stakeholders."
With respect to the Reynolds businesses to be sold under the regulatory
approvals, Mr. Belda observed, "The business case for the merger remains
compelling, and proceeds from the sale of the divested assets will
contribute significantly to investment in further profitable growth for
Shares of Reynolds stock will cease trading on the New York Stock
Exchange at the close of business today. As a result of the merger, each
outstanding Reynolds share was converted into 1.06 shares of Alcoa
Reynolds shareholders who hold their own stock certificates will receive
notice in the mail regarding the process to exchange their shares for
Alcoa stock. Reynolds shareholders whose shares are held through banks
or brokers will receive information about their holdings from those