Alcoa has announced that it arranged a definitive agreement to acquire South32 Limited’s interests in bauxite mining, alumina refinery and aluminum smelter operations.
This deal will be carried out in a cash and stock transaction for an upfront consideration of approximately $4.1 billion.
“The acquisition will add a high-quality, low-cost, and globally diversified set of mining, refining and smelting assets, further strengthening Alcoa’s mine-to-metal platform, expanding its global footprint and increasing the company’s ability to generate sustainable long-term value for shareholders,” an Alcoa spokesperson said.
“South32’s operations are a strong strategic fit within Alcoa. Alcoa’s proven operating model, technical expertise, and commercial capabilities are expected to unlock meaningful performance improvements and synergies across the combined portfolio. Greater scale and integration are expected to reduce complexity, lower costs, and improve competitiveness while strengthening supply chain resilience across key jurisdictions.
“At the same time, the transaction is anticipated to deliver broad benefits to stakeholders worldwide. It enhances Alcoa’s secure and reliable global aluminum supply at a time of accelerating demand for critical minerals and metals. It reinforces Alcoa’s long-term commitment and investment in Australia and Brazil and establishes a new presence in South Africa. By strengthening industrial capacity in these regions, the transaction will support economic resilience and thousands of direct and indirect jobs across local communities.”
William F. Oplinger, President and Chief Executive Officer of Alcoa, said about the acquisition.
“This is exactly the type of opportunity Alcoa is built to execute. These high-quality, globally relevant assets are a strong strategic fit within our portfolio. With our proven operating model and global capabilities, we are well positioned to enhance performance, unlock value, and support their long-term success within Alcoa,” he said.
“By investing in this opportunity, we are underscoring our commitment to supply security for our customers, strengthening the communities in which we operate, and delivering responsibly produced materials that are essential to the global economy.”
Thomas J. Gorman, Chairman of the Board of Alcoa, said the acquisition helps secure the organisation’s future.
“The board is pleased to support this transaction, which we believe strengthens Alcoa’s competitive position, supports long-term earnings and cash flow growth, and creates lasting value for our shareholders,” he said.
“We remain committed to the employees and stakeholders whose contributions are central to the success of these operations.”
Under the terms of the agreement, Alcoa will acquire South32’s interests in the Boddington bauxite mine and the Worsley alumina refinery in Western Australia, the Hillside aluminum smelter and idled Bayside smelter property in South Africa and two sites in Brazil, the Mineração Rio do Norte bauxite mine and Alumar alumina refinery and aluminum smelter. The transaction will exclude South32’s Mozal aluminum smelter in Mozambique.
The transaction is currently expected to close in the first half of 2027, subject to the approval of South32’s shareholders, the receipt of required regulatory approvals and the satisfaction of certain other customary closing conditions. The transaction has been unanimously approved by both Alcoa’s and South32’s Board of Directors.
