US aluminium giant Alcoa has agreed to buy South32’s bauxite, alumina and aluminium business in a deal worth up to $5.6 billion, handing the American producer control of Africa’s largest aluminium plant as the Australian miner exits the sector.
Under the agreement, the Pittsburgh-based company will pay $3.1 billion in cash and about $1 billion in shares, while taking on about $750 million in debt and lease liabilities.
The Australian miner could receive a further $750 million if alumina and aluminium prices exceed agreed targets over the next four years.
Once completed, the transaction will give Alcoa ownership of Hillside Aluminium, in South Africa, the continent’s largest aluminium smelter, while lifting its global share of equity-attributable bauxite production from 8.5% to 13% and putting it ahead of Rio Tinto.
South Africa At The Centre Of The Deal
