Sun Sep 15 13:36:15 UTC 2024: ## Alcoa Sells Saudi Arabian Joint Venture for $1.1 Billion, Simplifying Portfolio
**PITTSBURGH, PA – September 15, 2024** – Alcoa (NYSE: AA) announced today it will sell its 25.1% stake in the Ma’aden Joint Venture to Saudi Arabian Mining Company (Ma’aden) for approximately $1.1 billion. The deal, which is expected to close in the first half of 2025, includes 86 million shares of Ma’aden and $150 million in cash.
The joint venture, established in 2009, comprises a fully integrated mining complex in Saudi Arabia, including bauxite mining, alumina refining, aluminum smelting, and casting. Alcoa will maintain a 2% stake in Ma’aden for a minimum of three years, providing the company with financial flexibility and simplifying its portfolio.
“This transaction simplifies our portfolio, enhances visibility in the value of our investment in Saudi Arabia and provides greater financial flexibility for Alcoa,” said William F. Oplinger, Alcoa’s President and CEO. “This is an important step in improving our long-term competitiveness.”
Ma’aden CEO Bob Wilt expressed gratitude for Alcoa’s partnership and highlighted the continued collaboration between the two companies. “We look forward to future opportunities to collaborate as we continue to build the mining sector into the third pillar of the Saudi economy.”
The transaction is subject to regulatory approvals and Ma’aden shareholder approval. Citi is acting as Alcoa’s exclusive financial advisor, and White & Case LLP is acting as its legal counsel.
This sale marks a significant step for Alcoa as it refocuses its portfolio and strengthens its financial position. The company’s commitment to a sustainable future remains strong, and Alcoa continues to innovate and develop best practices for a more efficient and responsible aluminum industry.
First Piper 