Alcoa buys up to $5.6 billion in aluminum assets from South32
U.S. aluminum maker Alcoa agreed to purchase South32’s bauxite mine, alumina refinery, and aluminum smelter operations for an implied enterprise value of up to $5.6 billion. Under the deal, Alcoa will pay $3.1 billion in cash upfront and issue roughly 17 million shares valued at about $1 billion, while assuming $1.2 billion in environmental rehabilitation provisions.
The transaction marks a major strategic shift for South32, which plans to divest the aluminum business that accounted for 60% of earnings to focus on copper and zinc. The expansion bolsters Alcoa’s capacity as ongoing supply disruptions in the Middle East have pushed up prices for grey metal. Following the sale, South32’s chief executive noted the company remains open to further mergers and acquisitions.
From the sources (7 posts)
@businessSouth32 has agreed to sell its aluminum assets to Alcoa for an implied enterprise value of up to $5.6 billion
@wsjThe deal includes stakes in a bauxite mine, alumina refinery, and aluminum smelter operations, Alcoa said.
@reutersSouth32 CEO open to M&A following Alcoa asset sale
@staunovoAlcoa Buys South32 Aluminum Assets in Up to $5.6 Billion Deal Alcoa will pay South32 $3.1 billion in cash upfront, alongside roughly 17.0 million newly issued shares valued at around $1.0 billion
@staunovoAlcoa strikes $4.8bn deal for South32’s alumina and bauxite assets US aluminium group expands as disruptions in Middle East push up grey metal prices
@firstsquawkSouth32 says Alcoa will assume $1.2 billion in rehabilitation provisions.
@businessSouth32 will focus on copper and zinc after selling off the aluminum business that accounted for 60% of earnings