Forthcoming takeover U.S. aluminum producer Alcoa Corp. has put forward an offer of $2.2 billion to take over Alumina, the company’s Australia-based joint venture partner.
"Under the Process Deed, Alcoa and Alumina Limited intend to finalize and enter into a scheme implementation agreement for the all-scrip transaction (the “Agreement”). Upon completion of the Agreement, Alumina Limited shareholders would own 31.25 percent, and Alcoa shareholders would own 68.75 percent of the combined company,” Alcoa said in a statement.
Alcoa is the only operator of Alcoa World Alumina and Chemicals, a joint venture co-owned by Alumina.
"AWAC consists of a number of affiliated entities that own, operate or have an interest in bauxite mines and alumina refineries in Australia, Brazil, Spain, Saudi Arabia and Guinea. AWAC also has a 55 percent interest in an aluminum smelter in Victoria, Australia. Alcoa owns 60 percent and Alumina Limited owns 40 percent of the AWAC entities, respectively, directly, or indirectly,” according to the statement.