Saudi Arabian Mining Company (Ma’aden) and Alcoa, one of the world’s leading aluminium companies, announced on Sunday a Share Purchase and Subscription Agreement.
The agreement will see Alcoa’s share in both Ma’aden Aluminium Company (MAC) and Ma'aden Bauxite and Alumina Company (MBAC), transfer to Ma’aden, the Saudi company said in a statement.
In exchange, Alcoa will receive cash and newly issued Ma'aden shares, thereby broadening its interest in the Saudi Arabian Mining Company.
Upon completion, this transaction will provide Ma’aden with full ownership and total operational and management control of MAC and MBAC.
In exchange, the statement said Alcoa will receive $150 million and be issued shares representing approximately 2.21% of Ma’aden’s share capital post-transaction.
By transferring from JV partner to shareholder, Alcoa is making a clear statement about its confidence in Ma’aden’s strategy and growth projections, it added.
Bob Wilt, CEO of Ma’aden, said: “Ma’aden formed our joint venture with Alcoa in 2009, as part of our drive to develop a world class aluminium business.”
“Now it’s time for our partnership to evolve. As we continue to grow our aluminium business, streamlining the management structure of this business is an important step forward for Ma’aden as we prepare for greater future growth and continue to build the mining sector as the third pillar of the Saudi economy,” he added.
For his part, Alcoa’s President and CEO, William F. Oplinger expressed confidence that under the new arrangement, that MBAC and MAC are well positioned for success.
“The transaction simplifies our portfolio, enhances visibility in the value of our investment in Saudi Arabia and provides greater financial flexibility to Alcoa, an important part of improving our long-term competitiveness,” he said.
The transaction is subject to regulatory and corporate approvals, in addition to the completion of other closing conditions that are customary for this type of transaction. The transaction is expected to be completed by Q1 2025, Ma’aden said in its statement.
