Alcoa Corporation has announced the successful closing of its sale of a 25.1 per cent ownership interest in the Ma’aden Joint Venture to the Saudi Arabian Mining Company (Ma’aden), by a binding share purchase and subscription agreement.
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Through this transaction, Alcoa has received proceeds of approximately 86 million Ma’aden shares, valued at around USD 1.2 billion, along with USD 150 million in cash, which will be used primarily to cover related taxes and transaction expenses. Alcoa expects to record a gain of roughly USD 780 million in other income in the third quarter of 2025, and consistent with its practice for non-core asset sales, will reflect this as a special item.
As stipulated by the agreement, Alcoa is required to retain its Ma’aden shares for a minimum of three years. It will be allowed to sell one-third of the shares after each of the third, fourth and fifth anniversaries following the transaction’s close. Under certain conditions, Alcoa may hedge or borrow against its shareholding during this period, and in specific scenarios, the holding requirement may be reduced. Post-transaction, Alcoa now holds approximately 2 per cent of Ma’aden’s outstanding shares.
Commenting on the development, Alcoa President and CEO William F. Oplinger said, “While today marks the end of the Joint Venture, the closing of this transaction demonstrates the initial value to our shareholders and enables visibility within Alcoa’s financials until we monetise in the future. I thank Ma’aden’s leadership and the Kingdom of Saudi Arabia for their partnership over the last 16 years, and we look forward to continued engagement as Ma’aden shareholders.”
The Ma’aden Joint Venture, established in 2009, was conceived as a fully integrated mining and metals complex in Saudi Arabia. It includes the Ma’aden Bauxite and Alumina Company (MBAC), which oversees the bauxite mine and alumina refinery and the Ma’aden Aluminium Company (MAC), which operates the aluminium smelter and casthouse. Before this transaction, Alcoa held a 25.1 per cent stake in the Joint Venture, with Ma’aden owning the remaining 74.9 per cent.
Citi served as Alcoa’s exclusive financial advisor for the transaction, and White & Case LLP provided legal counsel.
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