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Alcoa has announced plans to acquire South32's major alumina, bauxite and aluminium assets in a transaction worth more than USD 8 billion, significantly expanding its upstream aluminium portfolio.
{alcircleadd}The deal will give Alcoa a controlling stake in Worsley Alumina, which operates a large bauxite mine near Boddington and an alumina refinery near Collie in Western Australia. The transaction also includes South32's interests in assets in Brazil and the Hillside Aluminium smelter in South Africa, the largest aluminium smelter in the Southern Hemisphere.
Alcoa President and Chief Executive Officer William Oplinger described the acquisition as a strong strategic fit for the company, saying the assets complement Alcoa's strengths as a leading upstream aluminium producer. He added that the company is well positioned to improve operational performance and unlock long-term value from the portfolio.
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South32 Chief Executive Officer Matt Daley said the transaction would simplify the company's business by sharpening its focus on long-life, higher-margin upstream operations while reducing operational complexity.
The proposed acquisition is subject to approval by South32 shareholders and regulatory authorities, with completion targeted by 29 June 2027.
The announcement came as a surprise to communities surrounding the Worsley Alumina operation. Local representatives in the Shire of Boddington said they had received no prior indication of the ownership change, with Shire President Eugene Smalberger describing the development as a "massive shock" for the local community.
If completed, the acquisition will further strengthen Alcoa's position in the global aluminium supply chain by adding significant bauxite mining, alumina refining and aluminium smelting capacity across multiple regions.
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