Alcoa to Sell Saudi Arabia Venture Stake in $1.1 Billion Deal
By Colin Kellaher
Alcoa has agreed to sell its 25.1% stake in a joint venture with Saudi Arabian Mining, the state-owned mining company better known as Ma'aden, to Ma'aden in a deal valued at about $1.1 billion.
Alcoa on Sunday said it will receive $150 million in cash and about 86 million Ma'aden shares valued at around $950 million for its stake in the venture, which it formed with Ma'aden in 2009.
The Pittsburgh bauxite and alumina producer said the carrying value of its investment in the venture was $545 million as of June 30.
Alcoa said the deal, which simplifies its portfolio in Saudi Arabia and gives it more financial flexibility, is slated to close in the first half of next year, adding that it will hold its Ma'aden shares for at least three years.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
September 16, 2024 07:04 ET (11:04 GMT)
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