In yet another attempt to raise the much-needed cash, the debt-ridden global miner Rio Tinto has decided to sell its Americas food-packaging assets worth $1.2 billion to the Wisconsin-based packaging group Bemis Co Inc. The Rio Tinto-Bemis deal would likely close in early September.

About the cash and stock deal, Rio Tinto said that it has sold the assets for $1 billion in cash, with the remaining to be potentially paid in the form of shares in US-listed Bemis. The deal will allow Bemis to take over the Anglo-Australian mining company's 23 operations spread across the US, Canada, Mexico, South America and New Zealand.

These businesses - with $1.5 billion yearly sales and 4,600 employees - package and wrap foods like meats, cheese, bagged lettuce and snacks. In a statement, Rio Tinto Chief Financial Officer Guy Elliott said: "The sale of the Food Americas division is the first significant step in reducing the asset portfolio acquired with Alcan. The transaction represents solid value given the challenging financial environment."

Meanwhile, Bemis CFO Gene Wulf said that his company had structured the deal with some equity, in order to maintain an investment-grade credit rating.

With regard to the transaction, Wulf said that the food industry has been more or less stable amid recession, and has not been as severely hit as the housing or auto industry.