U.S.-headquartered Alcoa has entered into a definitive agreement to acquire Australia-based South32 Limited’s interests in a bauxite mine, alumina refinery, and aluminum smelter operations in a cash and stock transaction for an upfront consideration of $4.1 billion.
“This is exactly the type of opportunity Alcoa is built to execute,” explained William F. Oplinger, president and chief executive officer of Alcoa. “These high-quality, globally relevant assets are a strong strategic fit within our portfolio and align directly with our strengths as a leading pure-play upstream aluminum company. With our proven operating model and global capabilities, we are well positioned to enhance performance, unlock value, and support their long-term success within Alcoa.”
Under the terms of the agreement, Alcoa will acquire South32’s interests in the Boddington bauxite mine and the Worsley alumina refinery in Western Australia; the Hillside aluminum smelter and idled Bayside smelter property in South Africa; and the Mineração Rio do Norte (MRN) bauxite mine and the Alumar alumina refinery and aluminum smelter in Brazil. The transaction will exclude South32’s Mozal aluminum smelter in Mozambique.
The transaction represents an implied enterprise value of approximately $4.7 billion when including net debt primarily related to normal course financing leases. Alcoa has also agreed to provide South32 with a contingent value right of up to $750 million.
The transaction is expected to close in the first half of 2027.
Source: Alcoa