Alcoa to Get $1.1 Billion for Stakes in Saudi Aluminum Plants

Alcoa Corp. will receive $1.1 billion in cash and stock in Saudi Arabian Mining Co. as part of a deal that will involve the Pittsburgh-based firm selling its stake in two metals plants in northern Saudi Arabia. 

Maaden, as the Saudi firm is known, signed a deal with Alcoa to purchase its holdings in a bauxite facility and an aluminum smelter for 563 million riyals 

Maaden will wholly own its aluminum business, and Alcoa will hold a 2.2% stake in Maaden once the deal is completed. 

Alcoa formed a joint venture with Maaden in 2009 to develop a $10.8 billion bauxite mine, refinery, smelter and other facilities.  

Maaden has since become an important part of the kingdom’s strategy to develop into a key supply chain and processing hub for metals and minerals needed for the energy transition, including for electric vehicles 

Maaden formed a joint venture with Saudi Arabia’s powerful sovereign wealth fund to invest in minerals around the world, and signed its first deal last year involving the acquisition of a 10% stake in Vale SA’s base metals unit.

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