Emirates Global Aluminium (EGA), a leader in global aluminium production, is reportedly looking into the possibility of acquiring Companhia Brasileira de Aluminio (CBA), a supplier of low-carbon aluminium, as per two sources who are in the know. CBA's comprehensive operations that cover the entire aluminium value chain make it an attractive option for EGA's strategic growth plans.
EGA, which is co-owned by Abu Dhabi's sovereign wealth fund Mubadala and the Investment Corporation of Dubai, is said to be working with Morgan Stanley as its investment banking adviser for a possible acquisition, according to sources aware of the situation.
Little on CBA
According to data from LSEG, CBA had a market capitalisation of about USD 487 million at the close of the market on Monday. The firm, which is 69 per cent owned by the Brazilian conglomerate Votorantim S.A., according to LSEG data, is all about producing low-carbon aluminium across seven states in Brazil.
It covers the entire aluminium value chain, from bauxite mining and refining to smelting and creating a diverse array of primary aluminium products. CBA is like an "all-inclusive asset" with its upstream operations, proprietary mines and access to bauxite that could really boost an investor's position in the market.
Opportunity for EGA amidst tariffs
EGA is on the lookout for potential growth opportunities, but it chooses not to engage with market rumours or speculation. CBA, Morgan Stanley and Votorantim opted not to provide any comments. Earlier this year, the company predicted that aluminium prices would continue to be volatile due to ongoing global trade tensions.
Also read: From Guinea setbacks to US smelter ambitions: EGA’s transformative H1 2025
Trump's tariffs on steel and aluminium imports coming into the US, which is a significant market for suppliers from the UAE. EGA was among a group of companies that struck a deal worth USD 200 billion with the Trump administration after the president visited the region in May.
According to a press release from EGA, it has revealed its plans to pour USD 4 billion into a new primary aluminium smelter project in Oklahoma. This is a significant milestone, as it will be the first new primary aluminium production facility in the US since 1980.
Furthermore, the firm has pointed out that the success of the project hinges on securing a competitive long-term power supply, along with state and local investment incentives and tax credit arrangements. It mentioned that it's currently in advanced talks with the Public Service Company of Oklahoma (PSO) and the Oklahoma government.
Financial front
EGA, in March, announced that its annual net profit for 2024 dropped by 23.5 per cent. The company attributed this decline to an impairment charge related to the halt of exports from its operations in Guinea, as well as the implementation of a corporate tax in the UAE.
To know more about the global primary aluminium industry 2025 outlook, read “Global Upstream Aluminium Industry Outlook 2025”
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