The largest aluminium producer in Brazil, Companhia Brasileira de Alumínio (CBA) inked an agreement to acquire 80% of Alux do Brasil, located in Nova Odessa-SP, in a transaction worth R$ 110 million, with a preference to buy the remaining 20% from the third year after accomplishment of the transaction.
Alux do Brasil stands among the largest producers of secondary aluminium alloys in Brazil and holds accounts of the major players in the automotive segment as its customers. The Alux facility will empower CBA to set foot in a new market segment in addition to expanding its recycled aluminium production capacity by around 20%. However, the acquisition strengthens CBA's position in the recycling market in Brazil and widens its bases for further expansion in the future, including new markets.
Ricardo Carvalho, CEO of CBA, said: “The acquisition is in line with our long-term strategy of increasing the capacity of recycled aluminium and will also contribute to our commitment to producing aluminium with an increasingly smaller carbon footprint. The Company already produces low-carbon aluminium and aims to reduce 40% of its greenhouse gas emissions by 2030 in processes from mining to the melting stage.”
Until the conclusion of the transaction and transfer of control to CBA is in process, the operations of both companies will pursue independently, due to it being subject to authorization by the relevant regulatory bodies.
Responses
