Latest News

Alcoa offers $2.2 billion in takeover bid for Australia’s Alumina

0

By David Winning

SYDNEY–Aluminum producer Alcoa has agreed to an all-stock deal to acquire Australia’s Alumina that values its equity at some 3.35 billion Australian dollars (US$2.20 billion).

Pittsburgh-based Alcoa is offering 0.02854 of its own stock for each Alumina share, representing a 13% premium to Alumina’s closing share price on Friday. Alumina said it recommends shareholders vote in favor of the offer, which comes after a number of previous bids by Alcoa were rejected.

Alcoa said it has 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 runs bauxite mining, alumina refining and aluminum smelting operations.

“Alcoa has been a proven operator of AWAC, and we recognize the value creation opportunities possible under a simplified ownership structure,” said William F. Oplinger, Alcoa’s president and chief executive.

Write to David Winning at david.winning@wsj.com

Clothing and electronics retailers report earnings this week, offering insight on consumer spending

Previous article

AT&T to credit $5 to some customers who were affected by service outage

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News