Alcoa Corporation has finalised the sale of its 25.1% stake in the Ma’aden joint venture to Saudi Arabian Mining Company (Ma’aden), marking a strategic exit from the integrated mining complex the two companies launched in 2009.
The transaction was completed under a binding share purchase and subscription agreement.
In exchange, Alcoa received around 86 million Ma’aden shares, valued at approximately US$1.2bn, alongside US$150mn in cash, which will primarily be used to cover taxes and transaction costs.
The company expects to report a gain of roughly US$780mn under other income for the third quarter of 2025.
In line with past asset sales, this gain will be recorded as a special item.
Saudi mining growth
Alcoa, which is based in Pittsburgh in Pennsylvania, is a global leader in bauxite, alumina, and aluminium products. It will now hold an estimated 2% of Ma’aden’s outstanding shares.
As stipulated in the agreement, these shares must be retained for a minimum of three years, with one-third eligible for sale after each of the third, fourth, and fifth anniversaries of the transaction’s closing.
However, under certain conditions, Alcoa is allowed to hedge or borrow against the shares during the holding period, and the lock-up may be reduced in specific scenarios.
The Ma’aden joint venture, established as a fully integrated aluminium production complex in Saudi Arabia, comprises the Ma’aden Bauxite and Alumina Company (MBAC) and the Ma’aden Aluminium Company (MAC).
Prior to the deal, Ma’aden held a 74.9% majority stake.
Citi served as Alcoa’s exclusive financial advisor for the transaction, while legal counsel was provided by White & Case LLP.
“While today marks the end of the Joint Venture, the closing of this transaction demonstrates the initial value to our shareholders and enables visibility within Alcoa’s financials until we monetize in the future,” said William F. Oplinger, Alcoa’s president and CEO.
“I thank Ma’aden’s leadership and the Kingdom of Saudi Arabia for their partnership over the last 16 years, and we look forward to continued engagement as Ma’aden shareholders.”
