Washington, United States–US aluminum producer Alcoa will acquire Australia’s Alumina in a $2.2 billion all-stock deal, the companies said in press releases Sunday.
Alcoa, based in Pittsburgh, Pennsylvania, will offer 0.02854 of its own stock for each Alumina share, a 13 percent premium to the Australian group’s Friday closing price.
Under the terms of the agreement, Alumina shareholders would own 31.25 percent and Alcoa shareholders would own 68.75 percent of the combined company.
The deal must first be approved by shareholders.
The two companies are already part of a joint venture, Alcoa World Alumina and Chemical (AWAC), which mines bauxite and produces aluminum.
The acquisition “would consolidate Alcoa’s ownership of one of the world’s largest bauxite and alumina producers,” the company said.