Alcoa has announced the successful completion of its acquisition of Alumina Limited (“Alumina”), marking a significant step in Alcoa’s strategy to enhance its position as a leading upstream aluminum producer. This acquisition reinforces Alcoa’s status as one of the world’s top producers of bauxite and alumina, providing increased financial and operational flexibility for long-term value creation. William F. Oplinger, Alcoa’s President and CEO, expressed pride in achieving this major milestone and extended gratitude to both teams and advisors for their efforts in closing the transaction on a tight schedule.
With this acquisition, Alcoa now fully owns and controls the Alcoa World Alumina and Chemicals (AWAC) joint venture, of which it previously held a 60 percent stake. AWAC encompasses various entities involved in bauxite mining and alumina refining across Australia, Brazil, Spain, Saudi Arabia, and Guinea, and holds a 55 percent stake in an aluminum smelter in Victoria, Australia.
Alcoa acquired all ordinary shares of Alumina through its wholly-owned subsidiary, AAC Investments Australia 2 Pty Ltd. In the all-stock transaction, Alumina shareholders received 0.02854 Alcoa shares for each Alumina share, valuing Alumina at approximately $2.8 billion based on Alcoa’s closing share price as of July 26, 2024.
Alumina shareholders’ interests in Alcoa shares will be represented as Clearing House Electronic Sub-register System (CHESS) Depositary Interests (CDIs), which facilitate trading Alcoa stock on the Australian Stock Exchange (ASX) under the ticker “AAI.” The CDIs are set to begin trading on August 2, 2024.
Key Benefits of the Acquisition:
- Market Leadership: The acquisition strengthens Alcoa’s global position as a leading alumina supplier, enhancing its competitive edge and offering Alumina shareholders exposure to Alcoa’s extensive aluminum business.
- Operational Efficiency: Integrating Alumina’s operations is expected to streamline corporate governance and deliver synergies, resulting in greater operational flexibility and strategic options.
- Commitment to Western Australia: The acquisition underscores Alcoa’s ongoing commitment to its operations in Western Australia, which are a crucial part of the company’s portfolio.
