Alcoa Signed Agreement to Sell Stake in Joint Venture

SEATTLE (Scrap Monster): Alcoa announced that it has entered into a binding share purchase and subscription agreement with Saudi Arabian Mining Company (Ma’aden) towards the sale of its 25.1% full ownership in the Ma’aden Joint Venture for approximately $1.1 billion. The transaction value comprises approximately 86 million shares of Ma’aden and $150 million in cash.

The deal is contingent upon the fulfillment of other customary closing conditions, regulatory clearances, and shareholder approval of Ma'aden. Closing is anticipated during H1 2025.

Established in 2009, the joint venture comprises two entities: the Ma’aden Bauxite and Alumina Company and the Ma’aden Aluminium Company. It must be noted that Alcoa currently owns 25.1% of the joint venture, while the remaining 74.9% interest is held by Ma’aden. As of June 30, 2024, Alcoa’s investment carried a total value of $545 million, a company news release said.

Alcoa shall retain its Ma'aden shares for a minimum of three years in accordance with the provisions of the agreement. Following the third, fourth, and fifth anniversaries of the transaction's closing, one-third of the shares will be transferable.

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