Alba-Ma’aden Merger Deadline Extended to April Amid Strategic Expansion

Ma'aden

The deadline for the much-anticipated merger between Aluminium Bahrain (Alba) and Saudi Arabian mining company Ma'aden has been pushed to 30 April of next year. This extension, announced on the Bahrain bourse, provides additional time for both parties to finalize the details of this strategic union in the Middle Eastern aluminium sector.

Strategic Developments and Share Acquisitions

Initially set for the end of this month, the merger's deadline extension follows a non-binding agreement made in September to explore the potential combination of these two prominent companies. Shortly after this agreement, Ma'aden announced the acquisition of a 20.62% stake in Alba previously owned by Saudi chemical manufacturer Sabic, signaling a significant step towards consolidating their resources and expertise.

Ma'aden CEO Bob Wilt emphasized that this acquisition aligns with Ma'aden’s growth ambitions, enhancing its status as a regional and global leader in the aluminium industry. The deal not only expands Ma'aden’s operational footprint but also reinforces its market position by integrating Alba’s established production and distribution networks.

Proposed Merger Structure and Market Impact

The discussions between Alba and Ma'aden have included several potential structures for the merger, such as a cross-listing of Alba on the Saudi Exchange and the issuance of new Alba shares to Ma'aden. In return, Ma'aden would contribute the entire share capital of its subsidiaries, Ma'aden Aluminium and Ma'aden Bauxite and Alumina, along with certain contractual rights.

This strategic alignment is expected to enhance the combined entity's capacity to innovate and compete on a global scale, particularly in the high-demand sectors of bauxite and alumina production. The extended deadline suggests a careful approach to merging operations that promise to reshape the dynamics of the Middle Eastern aluminium industry.