Alcoa to sell 25.1% stake in Ma'aden JV to Saudi Arabian Mining

Alcoa (ASX:AAI), a bauxite, alumina and aluminium products company, announced a binding agreement to sell its 25.1% ownership in the Ma'aden Joint Venture to Saudi Arabian Mining for approximately $1.1 billion.

The transaction includes roughly 86 million Ma'aden shares valued at $950 million and $150 million in cash.

"The transaction simplifies our portfolio, enhances visibility in the value of our investment in Saudi Arabia and provides greater financial flexibility for Alcoa, an important part of improving our long-term competitiveness," commented Alcoa's President and CEO, William F. Oplinger.

The Ma'aden Joint Venture, established in 2009, comprises the Ma’aden Bauxite and Alumina Company and the Ma’aden Aluminium.

Alcoa’s holding of Ma'aden shares will be subject to a three-year minimum holding period, with one-third of the shares becoming transferable after each subsequent year.

"Since 2009, Alcoa has been a valued partner of Ma'aden, and our aluminium business has benefited substantially from our strategic partnership," said Ma'aden CEO Bob Wilt. 

"We look forward to future opportunities to collaborate as we continue to build the mining sector into the third pillar of the Saudi economy," Ma'aden added.

The transaction awaits regulatory and shareholder approvals, alongside customary closing conditions, and is anticipated to conclude in the first half of 2025.

Citi is serving as Alcoa's exclusive financial advisor, and White & Case LLP is providing legal counsel.