Saudi Arabia’s Ma’aden announced on Tuesday it will acquire a 20.62% stake in Aluminium Bahrain (Alba) from Saudi Basic Industries Corp. (SABIC) for an undisclosed price.
The news comes a day after Ma’aden and Alba announced they would partner up to explore the potential to form a global aluminum powerhouse in the region. As part of the deal, Ma’aden would sell two of its aluminum units to Alba in exchange for Alba’s share capital.
Ma’aden is currently the largest multi-commodity mining company in the Middle East region, operating a total of 17 mines and sites and exporting products to over 30 countries. Alba is the world’s largest aluminum smelter ex-China, with production of over 1.62 million metric tonnes per annum.
SABIC is a global leader in petrochemicals and one of the largest publicly listed companies in the Middle East. The company is 70% owned by Saudi Aramco.
The latest transaction is indicative of Ma’aden’s continued growth and ambition to grow 10 times by 2040, with its aluminum business a core contributing factor to that strategy, said the Saudi state-owned miner in a press release.
“As we continue in our growth journey, the acquisition of shares in a highly experienced, well developed regional and global aluminum player firmly supports our ambitions,” Ma’aden CEO Bob Wilt said in the statement.
Prior to announcing its partnership with Alba, Ma’aden said it would acquire US aluminum maker Alcoa’s 25.1% holdings in a Saudi bauxite facility and an aluminum smelter for $1.1 billion.
“This week we have announced a number of transactions that align with our strategic intent to strengthen and expand our business both regionally and internationally, further building mining as the third pillar of the Saudi economy,” Wilt added.
