 |
| Alba |
Potential Merger of Aluminum Giants Collapses Despite Initial Enthusiasm
Aluminium Bahrain (Alba) and Saudi Arabia's Ma'aden have mutually agreed to terminate discussions regarding a potential merger. The two Middle Eastern aluminum giants had entered into a non-binding agreement in September to explore the possibility of combining their businesses. This agreement, initially set to expire at the end of 2024, was extended to the end of April 2025 but has now been unexpectedly discontinued.
Factors Leading to the End of Negotiations
The collapse of the merger talks comes as a surprise, especially after Ma'aden acquired a 20.62% stake in Alba from Saudi chemical manufacturer Sabic shortly after the initial agreement was announced. The proposed merger had envisioned a cross-listing of Alba on the Saudi Exchange and the issuance of new Alba shares to Ma'aden in exchange for the share capital of two of its subsidiaries, Ma'aden Aluminium and Ma'aden Bauxite and Alumina.
Despite the termination of merger discussions, Alba continues to demonstrate strong operational performance. The company recently announced a new production record of 1.622 million tonnes of aluminum in 2024, a slight increase from the previous year.
The reasons behind the termination of the merger talks remain unclear. However, this development will likely have significant implications for the Middle Eastern aluminum industry, potentially altering the competitive landscape and influencing future investment decisions in the region.
We publish to analyze metals and the economy to ensure our progress and success in fierce competition.
No comments
Post a Comment