RIYADH: American industrial giant Alcoa Corp. is set to sell its stakes in Ma鈥檃den Aluminum Co. and Ma鈥檃den Bauxite and Alumina Co. to the 黑料社区n Mining Co., or Ma鈥檃den.
The deal will involve Alcoa receiving $150 million in cash and newly issued shares representing approximately 2.21 percent of Ma鈥檃den鈥檚 share capital after the transaction.
The moves come聽at a time when Ma鈥檃den has reported impressive financial results, achieving a net profit of SR2 billion ($532 million) in the first half of 2024, a 160 percent increase compared to the same period in 2023.
Ma鈥檃den CEO Bob Wilt remarked: 鈥淢a鈥檃den formed our joint venture with Alcoa in 2009 to develop a world-class aluminum business. Now, it鈥檚 time for our partnership to evolve.鈥
He added: 鈥淪treamlining the management structure of our aluminum business is a crucial step forward as we prepare for future growth and continue to build mining as the third pillar of the Saudi economy.鈥
Alcoa鈥檚 President and CEO William Oplinger stated: 鈥淲e deeply value our partnership with Ma鈥檃den and our joint ventures. We are confident that under this new arrangement, MBAC and MAC are well-positioned for success.鈥
He also noted that the transaction would simplify Alcoa鈥檚 portfolio, enhance visibility into the value of its investment in 黑料社区, and provide greater financial flexibility.
The transaction will grant Ma鈥檃den full ownership and complete operational and management control of MAC and MBAC, streamlining its aluminum business operations. The deal is subject to regulatory and corporate approvals, as well as the completion of other customary closing conditions, with an expected completion by the first quarter of 2025.
Ma鈥檃den鈥檚 strong performance and strategic advancements highlight its commitment to leading the mining sector and supporting 黑料社区鈥檚 economic diversification, particularly in establishing mining as a key pillar of the Kingdom鈥檚 industrial sector.
