Alcoa (AA) Closes Ma’aden Transaction

Alcoa Corporation (NYSE: AA) today announced the successful closing of the Company’s sale of its full ownership interest of 25.1% in the Ma’aden Joint Venture (the “Joint Venture”) to Saudi Arabian Mining Company (“Ma’aden”), pursuant to a binding share purchase and subscription agreement (the “Agreement”). Alcoa received proceeds of approximately 86 million shares of Ma’aden (valued at approximately $1.2 billion) and $150 million in cash (to be used primarily for related taxes and transaction costs) and expects to record a gain of approximately $780 million in other income in the third quarter of 2025. Consistent with prior transactions, Alcoa reflects gains or losses from non-core asset sales as special items.

Pursuant to the terms of the Agreement, Alcoa will hold its Ma’aden shares for a minimum of three years and can sell one-third of the shares after each of the third, fourth and fifth anniversaries of closing of the transaction (the “holding period”). During the holding period, Alcoa is permitted, under certain conditions, to hedge and borrow against its Ma’aden shares. Under certain circumstances, such minimum holding period can be reduced. Following the transaction, Alcoa owns approximately 2% of Ma’aden’s current shares outstanding.

“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.”

The Joint Venture was created in 2009 as a fully integrated mining complex in the Kingdom of Saudi Arabia and today comprises two entities: the Ma’aden Bauxite and Alumina Company (“MBAC”; the bauxite mine and alumina refinery) and the Ma’aden Aluminum Company (“MAC”; the aluminum smelter and casthouse). Alcoa previously owned 25.1% of the Joint Venture and Ma’aden owned 74.9%.

In connection with the transaction, ​Citi acted as Alcoa’s exclusive financial advisor, and White & Case LLP acted as its legal counsel.

You May Also Be Interested In

• Enova adds Maria Veltre to board as two directors retire
• Ideal Power (IPWR) files $75M mixed shelf
• Scribe Therapeutics Files for Nasdaq IPO