Alcoa Seals $8 Bn South32 Deal as Matthew Daley Takes Over as CEO
Synopsis
Key Highlights Alcoa agrees to buy South32’s aluminium assets in a deal of up to $5.6 billion. US$4.1 billion will go as upfront consideration to South32. Acquisition includes ownership interests in Worsley Alumina, Hillside…
Key Highlights
- Alcoa agrees to buy South32’s aluminium assets in a deal of up to $5.6 billion.
- US$4.1 billion will go as upfront consideration to South32.
- Acquisition includes ownership interests in Worsley Alumina, Hillside Aluminium and Brazilian operations.
- The deal is expected to add significantly to Alcoa’s global aluminium and alumina output.
- Matthew Daley has officially begun as the CEO and Managing Director of South32.
South32 has agreed to sell out its global aluminium value chain assets to Alcoa Corporation in a deal valued at USD5.6 billion ($8 billion), with USD4.1 billion ($5.9 billion) upfront consideration.
The agreement encompasses Alcoa acquiring its own 86% stake in Worsley Alumina from South32, along with full ownership of Hillside Aluminium, 33% in the MRN bauxite mine, a 36% stake in the Brazil Alumina refinery and a stake in the Brazil aluminium smelter.
Acquisition Expands Alcoa’s Global Operations
Alcoa said the deal would help it enhance its portfolio of businesses that includes mining but also refining and smelting on a globally diversified basis and extending its footprint internationally.
On closing of the transaction, currently expected for mid-2027, the company anticipates a 3.2 million metric tonnes (Mmt) increase in aluminium production capacity and new 14.8 Mmt alumina production capacity will be added to its operations.
Matthew Daley Officially Succeeds as President & CEO
Matthew Daley has been appointed the Chief Executive Officer and Managing Director of South32 following the resignation of Graham Kerr effective 30 June.
According to South32, the deal is expected to enhance value for its owners, enabling a repositioning as an upstream base metals-focused business centred on high-margin assets with future growth opportunities. The structure of the deal allowed for substantial upfront payment in the form of proceeds, but still kept part of the upside through price-linked consideration, the company added.
Source: Capital Brief
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