Alcoa Buys South32 Aluminum Assets for Up to $5.6 Billion as Demand Strengthens
Updated
Updated · Bloomberg · Jun 30
Alcoa Buys South32 Aluminum Assets for Up to $5.6 Billion as Demand Strengthens
1 articles · Updated · Bloomberg · Jun 30
Summary
Alcoa agreed to acquire South32’s bauxite, alumina and aluminum assets in Australia, Brazil and South Africa, expanding its footprint across key parts of the aluminum supply chain.
The deal is valued at as much as $5.6 billion, with Alcoa paying $3.1 billion in cash, about $1 billion in shares, and taking on $750 million of net debt and lease liabilities.
South32 could receive another $750 million if alumina and aluminum prices top agreed thresholds over the next four years, tying part of the price to market strength.
The transaction excludes an idled Mozambique smelter that South32 said remains under strategic review, while the broader purchase bolsters Alcoa’s standing among the world’s largest aluminum producers.