Alcoa buys South32 assets for $8.5b, Matthew Daley assumes CEO role
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The news: South32 has agreed to sell its global aluminium value chain assets to Alcoa Corporation for an upfront consideration of USD4.1 billion ($5.9 billion), with the total transaction valued at up to USD5.6 billion ($8 billion).
The context: Under the transaction, Alcoa will acquire South32’s 86% stake in Worsley Alumina, 100% in Hillside Aluminum, 33% in the MRN bauxite mine, 36% in Brazil Alumina refinery and 40% in the Brazil aluminium smelter.
Alcoa stated that the acquisition will expand its globally diversified portfolio of mining, refining and smelting operations, while strengthening its global footprint.
Once the deal is finalised in the first half of 2027, Alcoa projects it will add 3.2 million metric tonnes (Mmt) of aluminium and 14.8 Mmt of alumina to its operations.
Separately, Matthew Daley has officially assumed his role as chief executive officer and managing director for South32, following the resignation of Graham Kerr on 30 June.
What they said: “This transaction will unlock significant value for shareholders and repositions South32 as a leading upstream base metals focused company with high-margin assets and transformational growth,” Kerr said.
“The sale of our aluminium value chain assets to Alocoa for up to USD5.6 billion will deliver significant upfront proceeds while retaining upside to our commodity price strength through price-linked consideration,” he added.
