South32 to sell aluminium assets to Alcoa in $US5.6 billion deal in base metals, copper push under new boss
South32 is offloading aluminium assets to Alcoa for up to $8.09 billion as the miner sharpens its focus on base metals and copper under new chief executive Matt Daley.
South32 has inked a deal to sell aluminium assets to Alcoa Corporation for up to $US5.6 billion ($8.09b) as the miner sharpens its focus on base metals and copper under new chief executive Matt Daley.
Under the massive transaction, Alcoa will acquire the Perth-based BHP spin-off’s interests in Worsley Alumina in WA, Hillside Aluminium in South Africa and the MRN bauxite mine in Brazil.
South32’s stakes in the Brazil Alumina refinery and Brazil Aluminium smelter will also be acquired.
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By continuing you agree to our Terms and Privacy Policy.The consideration includes $US3.1b ($A4.48b) in cash upfront and Alcoa shares, with the US-headquartered aluminium giant also assumimg rehabilitation provisions of about $US1.2b ($A1.73b).
It comes as Mr Daly begins his first day as chief executive and managing director, replacing Graham Kerr, who will continue as a strategic adviser to the sale.
“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,” Mr Kerr said.
After the deal was complete, South32’s portfolio would be focused on high-quality, long-life base and precious metals assets, Mr Daly said.
The mothballed Mozal Aluminium operation in Mozambique was not part of the transaction, but selling it remained “under active consideration”, South32 said.
