Here's an update about the share purchase and subscription agreement signed between Alcoa and Ma'aden on September 15, 2024. On February 4, 2025, the General Authority of Competition (GAC) approved Ma'aden to acquire Alcoa's 25.1 per cent ownership in Ma'aden Aluminium Company (MAC) and Ma'aden Bauxite and Alumina Company (MBAC).
According to a previously published report, Ma'aden will purchase Alcoa's shares in MAC and MBAC for $1.1 billion and get full ownership and total operational and management control of the bauxite and alumina company as well as the aluminium firm.
The approval of GAC marks the fulfilment of one of several customary conditions for this type of transaction. The deal is anticipated to be finalised by the first quarter of 2025.
This strategic acquisition of Alcoa's stake in MAC and MBAC will streamline Ma'aden's operations in the aluminium business. Ma'aden Bauxite and Alumina Company (MBAC) operates the bauxite and alumina business. Bauxite is produced at Al Ba'itha Mine, which has an annual capacity of 5 million tonnes of dry-weight bauxite, and then transported to Ras Al Khair Industrial City to feed the refinery. Ma'aden Aluminium Company (MAC) runs an aluminium smelter located adjacent to the refinery with two pot lines 1.2 km long. The smelter's annual primary aluminium production capacity is 780,000 tonnes per year.
Aiming to strengthen its position in the upstream aluminium industry in the whole of the Middle East, Ma'aden also agreed to acquire Saudi Basic Industries Corporation's (SABIC) 20.62 per cent stake in Aluminium Bahrain (ALBA), which would enable Ma'aden to grow its aluminium business 10 times higher by 2040.
Bob Wilt, CEO of Ma'aden, said: "As we continue in our growth journey, the acquisition of shares in a highly experienced, well developed regional and global aluminium player firmly supports our ambitions. This week we have announced a number of transactions that align with our strategic intent to strengthen and expand our business both regionally and internationally, further building mining as the third pillar of the Saudi economy."
Responses
