Saudi Arabian mining company Ma'aden is close to achieving total control of its integrated aluminium business after getting critical regulatory consent to buy Alcoa's 25.1 per cent stakes in two significant joint ventures. The Capital Market Authority (CMA) approved the offer by Ma'aden to buy Alcoa's shareholding in both Ma'aden Aluminium Company (MAC) and Ma'aden Bauxite and Alumina Company (MBAC) on June 2.
This move is a stepping stone towards Ma'aden’s long-term plan for full ownership and full operating and managing control of both the bauxite and alumina business and the downstream aluminium smelter. The transaction, as previously reported, is valued at USD1.1 billion and represents Ma'aden strategic intent for its aluminium operation and pursuit of increasing domestic industrial capability.
Saudi Arabia's aluminium ambitions
The transaction is part of Saudi Arabia's efforts to diversify its economy from oil and gas, with the manufacture of aluminium being a key component. By fully integrating its operations, Ma'aden hopes to enhance efficiency and access further opportunities in the global market.
This autonomy in the bauxite-to-aluminium value chain will also position Saudi Arabia as an even stronger player in the global metals industry. This move comes after Ma'aden broader plans in the regional aluminium industry, such as the negotiation of a potential merger with Aluminium Bahrain (ALBA), which has the potential to make the merged entity one of the world's top producers.
While CMA green light is a serious hurdle to overcome, the transaction requires approval of the shareholders. The transaction will be put up for voting at Ma'aden's 13th Extraordinary Assembly General Meeting on Saturday, June 7. Approval by the shareholders will pave the way for the eventual consummation of this historic transaction, opening new doors to a new era in Saudi Arabia's aluminium sector.
Also read: Ma’aden reports no tariff-related disruptions in Q1, with strong gains in revenue and production
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