https://arab.news/zjkv9
RIYADH: American industrial giant Alcoa Corp. is set to sell its stakes in Ma’aden Aluminum Co. and Ma’aden Bauxite and Alumina Co. to the Saudi Arabian Mining Co., or Ma’aden.
The deal will involve Alcoa receiving $150 million in cash and newly issued shares representing approximately 2.21 percent of Ma’aden’s share capital after the transaction.
This move aligns with US firm’s strategy to deepen its involvement with Ma’aden and underscores its ongoing commitment to the Saudi company.
It also comes at a time when Ma’aden has reported impressive financial results, achieving a net profit of SR2 billion ($532 million) in the first half of 2024, a remarkable 160 percent increase compared to the same period in 2023.
Ma’aden CEO Bob Wilt remarked: “Ma’aden formed our joint venture with Alcoa in 2009 to develop a world-class aluminum business. Now, it’s time for our partnership to evolve.”
He added: “Streamlining 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.”
Alcoa’s President and CEO William Oplinger stated: “We deeply value our partnership with Ma’aden and our joint ventures. We are confident that under this new arrangement, MBAC and MAC are well-positioned for success.”
He also noted that the transaction would simplify Alcoa’s portfolio, enhance visibility into the value of its investment in Saudi Arabia, and provide greater financial flexibility.
The transaction will grant Ma’aden 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’aden’s strong performance and strategic advancements highlight its commitment to leading the mining sector and supporting Saudi Arabia’s economic diversification, particularly in establishing mining as a key pillar of the Kingdom’s industrial sector.