BlackRock Becomes Alcoa’s Largest Shareholder Amid Company’s Return to Profitability
BlackRock, the world's largest investment fund manager, has increased its stake in Alcoa, just as the Pittsburgh-based multinational records two consecutive profitable quarters. According to Bloomberg, BlackRock closed September as Alcoa's largest shareholder, with a 9.76% stake after purchasing an additional 3.6 million shares. The firm, headed by Larry Fink, now controls a total of 25.2 million shares in the aluminum manufacturer.
This move positions BlackRock ahead of Vanguard, which owns 17.9 million shares (7% of the total), and Eagle Capital Management, which holds 15 million shares (5.8%). Other major shareholders include Morgan Stanley, with a 3.24% stake, and State Street Corp, with 3%. Alcoa's recent improvement in its income statement has also been reflected in its stock performance, with shares closing at \$41.10 on Friday, representing a 20.9% increase for the year.
BlackRock's stake is currently valued at approximately \$1.06 billion, while Vanguard's stake is valued at around \$754 million. This rise in value highlights the benefits for shareholders as Alcoa's market capitalization climbs to \$10.69 billion.
Alcoa has also experienced a change in direction for its San Cibrao complex. After failing to receive an attractive offer from any of the 60 companies it approached since early 2024, the company has decided to put its sale plans on hold. Instead, Alcoa has entered into an agreement in principle with Ignis Equity Holdings, which could see Ignis acquire a 25% stake in the San Cibrao complex if negotiations are successful. As part of the deal, Ignis would contribute 25 million euros to finance operations, in addition to the 75 million euros Alcoa plans to invest, contingent on support from the Xunta, the Spanish government, and labor unions.
To secure the future of San Cibrao, Alcoa has outlined several key requirements. The company is seeking greater support for compensation related to indirect CO2 emission costs, as well as an expedited process for granting permits for wind power generation projects linked to the complex. Additionally, Alcoa has requested the approval of its red mud deposit (DBR) project and more flexibility in the current viability agreement, including access to guarantee deposits for operational cash needs and deferring or substituting capital commitments for investment projects.
Alcoa aims to return the San Cibrao complex to profitability, similar to its broader recovery across global operations. After losing around 600 million euros in 2023, Alcoa has reported consecutive quarters of positive earnings. The company's net profit between July and September reached \$135 million (about 124 million euros), following \$30 million (28 million euros) in the previous quarter, substantially narrowing the losses recorded earlier in 2024.
