Alcoa wins big as China invests in Rio Tinto

Alcoa Inc

. (NYSE: AA) caught a huge break in the Rio Tinto deal. It sure can use it.

The Pittsburgh-based aluminum producer agreed to exit a special purpose entity it formed last year with Aluminum Corp. of China, or Chinalco, to buy shares of Rio Tinto. Chinalco, which is investing $19.5 billion in Rio Tinto Plc (NYSE: RTP), will pay $1.02 billion to Alcoa by July.