Diamond Member Pelican Press 0 Posted March 12 Diamond Member Share Posted March 12 Alcoa to buy *********** partner Alumina in $2.2 billion all-stock deal The Alcoa Corp. Kwinana Alumina Refinery in Kwinana, Australia, on Wednesday, Feb. 28, 2024. U.S. aluminum producer Alcoa made a $2.2 billion offer to acquire its *********** ******-venture partner Alumina Ltd. to consolidate ownership of key upstream assets with long-term demand for the metal forecast to rise. Bloomberg | Bloomberg | Getty Images Alcoa will buy Alumina in an all-stock deal that values the *********** firm at $2.2 billion and make the U.S. company one of the world’s largest producers of alumina and bauxite. Shares of Alumina rose as much as 10.4% after Alcoa announced the deal on Monday, hitting their highest since August 2023. Alcoa shares gained 2.1% to $30.5 apiece. Alcoa’s push for acquiring its ****** venture partner can be seen as a gamble for metals which will be an important part of the transition to cleaner sources of energy. Buying Alumina gives Alcoa full control of their ****** venture, which is one of the world’s largest producers of the semi-processed form of aluminum. Aluminum is used to produce renewable infrastructure and electric vehicles. The global mining sector has seen a recent slew of merger and acquisitions despite rising concerns around the economic This is the hidden content, please Sign In or Sign Up of one of the world’s largest metals buyer, China, and slowing EV sales in the ******* States. “It could be a win-win for both companies,” Tim Waterer, chief market analyst at trading firm KCM Trade, said. “The takeover offer could be viewed as a vote of confidence in the resources space despite a cloudy growth This is the hidden content, please Sign In or Sign Up for the sector.” The buyout follows ******* States Steel’s $14.9 billion deal to buy Japan’s Nippon Steel and Newmont’s $15 billion acquisition of Aussie gold miner Newcrest. Post the deal, Alumina shareholders will own about 31.6% of the merged entity, while Alcoa shareholders will hold 68.4%. Alumina’s board, including Managing Director and CEO, recommended shareholders vote for the deal, in the absence of a superior proposal. The deal comes months after Alcoa faced operational and permit-related problems for its bauxite business in Australia. It also disclosed in January plans to halt production at the Kwinana alumina plant in Western Australia in a move to control costs. This is the hidden content, please Sign In or Sign Up Metal manufacturing,Aluminum mining and refining,Aluminum manufacturing,Sales,Electric vehicle manufacturing,Electric vehicles,Transportation and infrastructure organizations,Alternative and sustainable energy,Energy policy,Renewable power generation,Australia,Metal mining,US STEEL DRN,Metal Commodities,Mergers and acquisitions,Newmont Corporation,Nippon Steel Corp,Alumina Ltd,Alcoa Corp,business news #Alcoa #buy #*********** #partner #Alumina #billion #allstock #deal This is the hidden content, please Sign In or Sign Up Link to comment https://hopzone.eu/forums/topic/1786-alcoa-to-buy-australian-partner-alumina-in-22-billion-all-stock-deal/ Share on other sites More sharing options...
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