SYDNEY — Aluminum producer Alcoa has agreed to an all-stock deal to acquire Australia’s Alumina that values its assets at about A$3.35 billion ($2.20 billion).
Alcoa AA based in Pittsburgh,
offers 0.02854 of its shares for each AWC of alumina,
stock, representing a 13% premium to Alumina’s closing stock price on Friday. Alumina said it recommends shareholders vote in favor of the offer, which comes after a number of previous offers from Alcoa were rejected.
Alcoa said it had reached an agreement with fund manager Allan Gray Australia that gives it the right to buy up to 19.9% of Alumina.
Alumina owns a 40% stake in Alcoa World Alumina & Chemicals, or AWAC, a joint venture with Alcoa that operates bauxite mining, alumina refining and aluminum smelting operations.
“Alcoa is a proven operator of AWAC, and we recognize the value creation opportunities possible with a simplified ownership structure,” said William F. Oplinger, Alcoa president and chief executive officer.