Alcoa to Acquire South32 Assets for $4.1 Billion
Aluminum | 2026-07-01 06:00:09 | By Paul Ploumis
Under the agreement, Alcoa will pay $3.1 billion in cash and issue about 17 million new common shares, representing roughly 6% of its outstanding shares upon closing of the transaction.
SEATTLE (Scrap Monster): Alcoa Corporation has signed a definitive agreement to acquire South32 Limited's interests in several major bauxite, alumina and aluminum operations. The transaction, valued at $4.1 billion, is expected to significantly expand the company’s global upstream aluminum business.
The deal includes an enterprise value of approximately $4.7 billion, including assumed net debt. In addition to the upfront payment, South32 could receive up to $750 million through a contingent value right (CVR) tied to future alumina and aluminum price performance over four years beginning July 1, 2026.
Under the agreement, Alcoa will pay $3.1 billion in cash and issue about 17 million new common shares, representing roughly 6% of its outstanding shares upon closing of the transaction.
The acquisition covers South32's interests in the Boddington bauxite mine and Worsley alumina refinery in Australia, the Hillside aluminum smelter and Bayside smelter property in South Africa, and the Mineração Rio do Norte (MRN) bauxite mine, the Alumar alumina refinery and aluminum smelter in Brazil. Meanwhile, the Mozal aluminum smelter in Mozambique is excluded from the transaction.
The transaction is expected to close in the first half of 2027, subject to shareholder approval, regulatory clearances, and customary closing conditions.
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