Alcoa Corporation announced the completion of its acquisition of Alumina Limited, a move that enhances Alcoa’s position in the global aluminium industry.
This acquisition marks a crucial step for Alcoa as it strengthens its role as a leading upstream aluminium company, the company said in a media release.
Alcoa’s President and CEO, William Oplinger, expressed his satisfaction with the deal, stating, “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.”
He continued, “I want to thank both the Alcoa and Alumina Limited teams, and our advisors, for full cooperation and diligence in closing this transformational transaction on a very tight schedule.”
The acquisition grants Alcoa full ownership of the Alcoa World Alumina and Chemicals (AWAC) joint venture, in which it previously held a 60 per cent stake.
AWAC’s portfolio includes bauxite mines and alumina refineries across Australia, Brazil, Spain, Saudi Arabia, and Guinea, along with a 55 percent interest in an aluminium smelter located in Victoria, Australia.
Alcoa carried out the acquisition through its subsidiary, AAC Investments Australia 2 Pty Ltd.
The all-stock deal provided Alumina shareholders with 0.02854 Alcoa shares for each Alumina share, valuing the transaction at approximately $2.8 billion based on Alcoa’s closing share price on July 26, 2024.
Alumina shareholders will hold their Alcoa shares as Clearing House Electronic Sub-register System (CHESS) Depositary Interests (CDIs), allowing them to trade Alcoa stock on the Australian Stock Exchange (ASX).
Alcoa has also established a secondary listing on the ASX under the ticker “AAI,” with CDIs beginning to trade on 2 August 2024.
In particular, the acquisition solidifies Alcoa’s market leadership, enhancing its competitive edge in the global supply of alumina.
This merger increases Alcoa’s exposure to its core bauxite and alumina business while offering Alumina shareholders a stake in Alcoa’s global aluminium operations.
Additionally, integrating Alumina’s assets is expected to yield significant synergies through streamlined corporate governance, boosting operational flexibility and strategic opportunities.
