US aluminum producer Alcoa announced on Sunday that it plans to sell a 25.1% stake in its Ma'aden joint venture to Saudi Arabian mining company Ma'aden for $1.1 billion. According to a statement from Alcoa, the deal involves approximately 86 million shares of Ma’aden and $150 million in cash, with the transaction expected to be finalized in the first half of 2025.
"This transaction streamlines our portfolio, improves the clarity of our investment in Saudi Arabia, and offers enhanced financial flexibility for Alcoa," said Alcoa CEO William Oplinger. Alcoa stated that it will retain its Ma'aden shares for at least three years. Following the completion of the transaction, Alcoa will hold approximately 2% of Ma’aden’s current outstanding shares.
The joint venture, established in 2009 as a fully integrated mining complex in Saudi Arabia, currently has Ma’aden owning the remaining 74.9% of the project. "We anticipate future opportunities for collaboration as we continue to develop the mining sector into the third pillar of the Saudi economy," said Ma’aden CEO Bob Wilt.
In July, Alcoa reported quarterly revenue of $2.9 billion, surpassing the expected $2.8 billion.
