Ma’aden Completes Acquisition of Remaining Shares in Key Bauxite and Aluminum Units
Saudi Arabian Mining Company (Ma’aden) has announced a major acquisition deal to purchase the remaining shares of Ma’aden Bauxite and Alumina Company (MBAC) and Ma’aden Aluminium Company (MAC), previously held by subsidiaries of Alcoa Corporation. The Share Purchase and Subscription Agreement (SPSA), signed on September 15, 2024, will allow Ma’aden to acquire a 25.1% stake in both MBAC and MAC, increasing its ownership to 100% in both companies.
MBAC, which mines and refines bauxite into alumina, and MAC, which focuses on aluminum smelting and casting, are both integral to Ma’aden’s mining operations in Saudi Arabia. The acquisition deal, valued at SAR 4.125 billion ($1.1 billion), will be completed through a combination of cash payment and share issuance. Ma’aden will make a cash payment of SAR 562.5 million ($150 million) to Alcoa, while the remaining SAR 3.56 billion ($950 million) will be settled by issuing new shares in Ma’aden to Alcoa, representing approximately 2.21% of Ma’aden’s share capital post-transaction.
The acquisition will follow a previously announced deal with Mosaic Company to purchase 25% of Ma’aden Wa’ad Al Shamal Phosphate Company (MWSPC), which will increase Ma’aden's share capital before finalizing the MAC and MBAC acquisition. After both transactions, Ma’aden’s total share capital will increase from SAR 36.9 billion to SAR 38.8 billion.
With these acquisitions, Ma’aden will gain full control of MAC and MBAC, bolstering its position as a leading player in the aluminum and bauxite markets while enhancing its global reach and market share in critical mining sectors.
