The mining sector has seen consolidation

Under the terms of the deal, Rio Tinto, which is listed on both the London and Australian stock exchanges, is to pay $101 for each Alcan share.

Alcan had rejected a $27bn hostile takeover bid from US miner Alcoa on the grounds that it undervalued the firm.

The deal is to make Rio Tinto the largest maker of aluminium and bauxite.

Analysts had not been expecting any serious antitrust barriers to the deal.

Record metal prices have prompted consolidation in the industry.