The CEO of Saudi Arabia’s Ma’aden, Bob Wilt, said due diligence was underway on the merger between the two companies which he said would create a ‘global aluminium leader’.

He said Ma’aden had signed a non-binding heads of terms with Aluminium Bahrain (Alba) to explore the possible combination of segments of Ma’aden’s aluminium business with Alba’s.

Ma’aden has also already agreed to acquire a 20.62% share in Bahrain’s Alba from SABIC, which should be agreed in the first half of next year.

Mr Wilt said: “The exploration of a potential combination of businesses with Alba offers the potential to create a new global champion, harnessing the strengths of both companies to enhance production capacity, boost regional ties and deliver greater value to our shareholders.”