Alcoa completes acquisition of Alumina Limited, bolstering industry presence

Alcoa, a Pittsburgh-based industrial corporation and the global industry leader in bauxite, alumina, and aluminium products, has announced the successful completion of its acquisition of Alumina Limited. This strategic move enhances Alcoa's position as a leading pure-play upstream aluminium company, reinforcing its market leadership. The binding Scheme Implementation Deed with Alumina Limited was signed on March 11, 2024.

"Alcoa is proud to announce the completion of our first major acquisition. 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. 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," said said William F. Oplinger, Alcoa's President and CEO.

About the acquisition

With Alcoa's acquisition of Alumina Limited, the Alcoa World Alumina and Chemicals (AWAC) joint venture is now entirely owned and controlled by Alcoa. Previously, Alcoa held a 60 per cent stake in AWAC, which included affiliated entities operating bauxite mines and alumina refineries in Australia, Brazil, Spain, Saudi Arabia, and Guinea, as well as a 55 per cent interest in an aluminium smelter in Victoria, Australia.

Alcoa completed the acquisition of all ordinary shares of Alumina Limited through its wholly-owned subsidiary, AAC Investments Australia 2 Pty Ltd. In this all-stock transaction, Alumina shareholders received 0.02854 Alcoa shares for each Alumina share. Based on Alcoa's closing share price on July 26, 2024, this consideration values Alumina at approximately $2.8 billion.

Alumina shareholders will hold interests in Alcoa shares through Clearing House Electronic Sub-register System (CHESS) Depositary Interests (CDIs), representing units of beneficial ownership in Alcoa common stock. This setup allows Alumina Limited shareholders to trade Alcoa common stock via CDIs on the Australian Stock Exchange (ASX). Alcoa has also established a secondary listing on the ASX under the ticker "AAI." The CDIs are set to begin trading on the ASX on August 2, 2024.

Benefits of the Acquisition

The merger strengthens Alcoa's position as a leading global alumina supplier, boosting its competitive edge in key markets. The acquisition expands Alcoa's economic stake in its core, tier-1 bauxite and alumina operations while offering Alumina shareholders access to Alcoa's global aluminium business.

By incorporating Alumina's interests, Alcoa expects to realize synergies through streamlined corporate governance, enhancing operational flexibility and strategic opportunities. Alcoa's operations in Western Australia are a crucial part of the Company's portfolio, and this acquisition further strengthens that commitment.