Alcoa Completes $2.8 Billion Buyout of Alumina Limited

In a significant industry move, US aluminum producer Alcoa has finalized the acquisition of its Australian joint venture partner, Alumina Limited, in an all-stock deal valued at approximately $2.8 billion. This marks a notable increase from the initially projected $2.2 billion valuation when the agreement was first announced in February.

With this acquisition, Alcoa now holds full ownership of Alcoa World Alumina and Chemicals (AWAC). AWAC operates and has interests in bauxite and alumina facilities across Australia, Brazil, Spain, Saudi Arabia, and Guinea, representing roughly 25% of the global alumina market. This consolidation positions Alcoa as a dominant player in the industry.

"The acquisition of Alumina Limited strengthens Alcoa's position as one of the world's largest bauxite and alumina producers and is expected to result in long-term value creation from greater financial and operational flexibility," said Alcoa's chief executive, William F. Oplinger.

The completion of this acquisition underscores Alcoa’s strategy to enhance its market standing and operational capabilities, potentially yielding significant benefits from integrated operations and streamlined decision-making processes.