US aluminium producer Alcoa has closed the acquisition of Australia-based Alumina, strengthening its market position as a pure play, upstream aluminum company.
The scheme implementation deed (SID) was signed between the parties in March 2024.
Go deeper with GlobalData
The transaction, which was conducted through Alcoa’s wholly owned subsidiary, AAC Investments Australia 2, involved an all-stock deal providing Alumina shareholders with 0.02854 Alcoa shares for each share of Alumina held.
Based on Alcoa’s closing share price as of 26 July 2024, the deal values Alumina at approximately $2.8bn (A$4.29bn).
The acquisition enables Alcoa to have full ownership of the AWAC JV, in which Alcoa previously held a 60% stake and Alumina a 40% stake.
AWAC has interests in bauxite mines and alumina refineries across several countries including Brazil, Australia, Spain, Saudi Arabia and Guinea, as well as a 55% interest in an aluminium smelter in Victoria, Australia.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAlcoa president and CEO William F Oplinger said: “The acquisition of Alumina Limited strengthens Alcoa’s position as one of the world’s largest bauxite and alumina producers and is expected to result in long-term value creation from greater financial and operational flexibility.”
Alcoa anticipates that the integration of Alumina’s interests will lead to operational synergies including simplified corporate governance, increased operational flexibility and strategic optionality.
The acquisition boosts Alcoa’s economic exposure to its tier-1 bauxite and alumina business, while offering Alumina shareholders exposure to Alcoa’s global aluminium business.
