Deal spans Australia, South Africa, Brazil, including stakes in MRN, Alumar, with synergies estimated at $900m
Alcoa announced on Tuesday (30) a final agreement to acquire South32’s interests in bauxite, alumina, and aluminum assets for approximately $4.1 billion in a cash-and-stock transaction.
The deal covers operations in Australia, South Africa, and Brazil—including stakes in Mineração Rio do Norte (MRN) and the Alumar industrial complex—as well as a contingent payment of up to $750 million tied to future alumina and aluminum prices.
Alcoa will acquire South32’s interests in the Boddington bauxite mine and Worsley alumina refinery in Western Australia; the Hillside aluminum smelter and Bayside asset in South Africa; and the Mineração Rio do Norte (MRN) bauxite mine and the Alumar complex—comprising an alumina refinery and aluminum smelter—in Brazil. The Mozal operation in Mozambique is not included in the transaction.
Operating in Maranhão state since 1980, Alumar is an industrial complex that includes an alumina refinery, aluminum smelter, port, and environmental reserve. The alumina refinery is owned by a consortium comprising Alcoa (54%), South32 (36%), and Rio Tinto (10%). The aluminum smelter is owned by Alcoa (60%) and South32 (40%).
MRN, Brazil’s largest bauxite producer, is jointly owned by Glencore (44%), South32 (33%), and Rio Tinto (22%).
According to Alcoa, the acquisition is expected to generate approximately $900 million in synergies and immediately improve key financial metrics, including earnings per share and free cash flow.
Alcoa will pay $3.1 billion in cash and issue approximately 17 million new common shares to South32, valued at about $1 billion, bringing the total transaction value to $4.1 billion. The new shares will represent roughly 6% of Alcoa’s outstanding share capital following issuance.
The company has secured financing through a $3.1 billion bridge commitment from Goldman Sachs and plans to replace it with cash on hand and long-term debt before closing.
According to Alcoa, the acquisition will add a portfolio of high-quality, low-cost, globally diversified mining, refining, and smelting assets, further strengthening its integrated “mine-to-metal” platform.
“This is the type of opportunity Alcoa is prepared to execute,” Alcoa CEO William F. Oplinger said in a statement. “These high-quality, globally relevant assets are an excellent fit with our portfolio and align with our strengths as a leading upstream aluminum producer. With our proven operating model and global capabilities, we are well positioned to enhance performance, unlock value, and support the long-term success of these assets within Alcoa.”
The transaction is expected to close in the first half of 2027, subject to approval by South32 shareholders, regulatory clearances, and other customary closing requirements.
*By Victor Meneses, Valor — São Paulo
Source: Valor International
https://valorinternational.globo.com/