Saudi Arabia’s Ma’aden has signed an agreement with Alcoa to acquire a 25.1% stake in their joint venture for $1.1 billion. The deal includes approximately 86 million Ma’aden shares valued at $950 million and $150 million in cash.
Bob Wilt, CEO of Ma’aden, emphasized the strategic benefits of their partnership with Alcoa since 2009 and expressed optimism about future collaborations to strengthen Saudi Arabia’s mining sector.
The Ma’aden joint venture, established in 2009, integrates mining operations in Saudi Arabia and comprises the Ma’aden Bauxite and Alumina Company and the Ma’aden Aluminium Company. Currently, Alcoa holds 25.1% of the joint venture, with the remaining 74.9% owned by Ma’aden. As of mid-2024, Alcoa’s investment was valued at $545 million.
Alcoa’s CEO, William F. Oplinger, noted that the transaction will simplify Alcoa’s portfolio, increase the visibility of its investment in Saudi Arabia, and improve financial flexibility.
The transaction is expected to close in the first half of 2025, pending regulatory and shareholder approvals. Alcoa must hold its Ma’aden shares for at least three years, with one-third becoming transferable each year after the third anniversary of the deal’s closing. During this period, Alcoa can hedge and borrow against its shares.