Alcoa has announced the closure of its sale of a 25.1% ownership interest in the Ma’aden joint venture (JV) to the Saudi Arabian Mining Company, also known as Ma’aden.
The transaction, conducted under a binding share purchase and subscription agreement, resulted in Alcoa receiving 86 million Ma’aden shares valued at $1.2bn, and $150m in cash. The cash will primarily cover related taxes and transaction costs.
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Before the sale, Alcoa held a 25.1% stake in the JV, with Ma’aden owning the remaining 74.9%.
The company anticipates a gain of $780m in other income in the third quarter of 2025.
Alcoa will retain its Ma’aden shares for a minimum of three years, with the option to sell one-third of the shares after each of the third, fourth and fifth anniversaries of the transaction’s close.
During this holding period, Alcoa is allowed to hedge and borrow against its Ma’aden shares under certain conditions.
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By GlobalDataThe minimum holding period may be shortened under specific circumstances.
Following the sale, Alcoa’s ownership in Ma’aden has been reduced to 2% of the current outstanding shares.
The Ma’aden JV, established in 2009, is a fully integrated mining complex in Saudi Arabia, consisting of the Ma’aden Bauxite and Alumina Company and the Ma’aden Aluminum Company.
Alcoa president and CEO William F Oplinger stated: “While today marks the end of the joint venture, the closing of this transaction demonstrates the initial value to our shareholders and enables visibility within Alcoa’s financials until we monetise in the future.
“I thank Ma’aden’s leadership and the Kingdom of Saudi Arabia for their partnership over the last 16 years, and we look forward to continued engagement as Ma’aden shareholders.”
Citi served as Alcoa’s exclusive financial advisor for the transaction, while White & Case provided legal counsel.
In a related development, Alcoa has entered a joint venture agreement with IGNIS EQT, an energy company, to ensure the continued stable and sustainable operations at Alcoa’s San Ciprián complex.
Effective from 31 March 2025, Alcoa will maintain a 75% interest in the complex and remain the managing operator, with IGNIS EQT holding the remaining 25% stake.
Both companies have invested in the joint venture, with Alcoa contributing $81m and IGNIS EQT $27m to support the complex’s operations.
