Alcoa Announces Strategic Acquisition of South32’s Bauxite, Alumina, and Aluminum Assets for $4.1 billion
Alcoa has entered a definitive agreement to acquire South32's bauxite, alumina, and aluminum assets for $4.1 billion in upfront cash and stock, plus a contingent value right of up to $750 million tied to future alumina and aluminum prices. The deal structure includes $3.1 billion in cash and approximately 17 million newly issued Alcoa shares valued at ~$1.0 billion, representing roughly 6% dilution. Alcoa has secured a $3.1 billion bridge facility from Goldman Sachs and plans to replace it with balance sheet cash and permanent debt before closing.
Key figures
- Deal Value Usd
- $4.1 billion
- Shares Offered
- 17000000
- Dilution pct
- 6%
- Cvr max value
- $750 million
- Synergies npv
- $900 million
- Expected close
- H1 2027
- Vwap per share
- $58.79
- Bridge financing
- $3.1 billion
- Enterprise value
- $4.7 billion
- Cash consideration
- $3.1 billion
- Stock consideration value
- $1.0 billion
- Pro forma alumina production mmt
- 14.8
- Pro forma aluminum production mmt
- 3.2
AI analysis
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