South32 sells aluminium assets to Alcoa for US$5.6B
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- South32 agreed to sell its aluminium value chain assets to Alcoa for up to US$5.6 billion.
- Alcoa will assume approximately US$1.2 billion in related rehabilitation provisions as part of the transaction.
- The divestment aims to refocus the company's portfolio on base and precious metals to drive production growth.
South32 (ASX:S32) executed an agreement to sell its aluminium assets to Alcoa (NYSE:AA) for up to US$5.6 billion.
The transaction excludes Mozal Aluminium, which remains on care and maintenance under active consideration for divestment.
“Following completion, our portfolio will be focused on high-quality, long-life assets,” said South32 CEO Matt Daley.
The agreement includes US$3.1 billion upfront cash and US$1 billion in Alcoa shares.
Following the announcement, the South32 share price was unchanged at $3.65.
The company stated that the transaction is expected to deliver significant upfront proceeds while retaining commodity price upside.
The executive transition concluded on June 30 as Graham Kerr stepped down from the managing director role.
