Alcoa Corporation is set to acquire South32's aluminium assets for $4.1 billion.
The agreement includes South32's bauxite mines, alumina refineries and aluminium smelter operations.
Alcoa will acquire South32’s interests in the Boddington bauxite mine and the Worsley alumina refinery in Western Australia; the Hillside aluminium smelter and idled Bayside smelter property in South Africa; and the Mineração Rio do Norte (MRN) bauxite mine and the Alumar alumina refinery and aluminum smelter in Brazil.
It will not include South32’s Mozal aluminum smelter in Mozambique.
The transaction is expected to close in the first half of 2027.
William F. Oplinger, President and Chief Executive Officer of Alcoa, said: “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 and align directly with our strengths as a leading pure-play upstream aluminium company.
"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.”
Upon closing, Alcoa will be a global alumina and aluminium producer with CY2025 pro forma production of 3.2 Mmt aluminum and 14.8 Mmt alumina.
Alcoa has secured fully committed financing for the transaction in the form of an initial $3.1 billion bridge commitment from Goldman Sachs, which it plans to replace with cash from the balance sheet and permanent debt financing prior to transaction close.