Alcoa to Sell Saudi Arabia Venture Stake in $1.1 Billion Deal
By Colin Kellaher
Alcoa has agreed to sell its 25.1% stake in a joint venture with Saudi Arabian Mining, the state-owned mining company better known as Ma'aden, to Ma'aden in a deal valued at about $1.1 billion.
Alcoa on Sunday said it will receive $150 million in cash and about 86 million Ma'aden shares valued at around $950 million for its stake in the venture, which it formed with Ma'aden in 2009.
The Pittsburgh bauxite and alumina producer said the carrying value of its investment in the venture was $545 million as of June 30.
Alcoa said the deal, which simplifies its portfolio in Saudi Arabia and gives it more financial flexibility, is slated to close in the first half of next year, adding that it will hold its Ma'aden shares for at least three years.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
September 16, 2024 07:04 ET (11:04 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
6 Top-Performing Large-Growth Funds
-
What’s the Difference Between the CPI and PCE Indexes?
-
Micron Earnings: Great Guidance but Stock Now Looks Fairly Valued
-
August PCE Report Forecasts Show More Good News on Inflation
-
AI Stocks May Be Down, but Don’t Count Them Out
-
4 Stocks to Buy as the Fed Cuts Interest Rates
-
Markets Brief: The Uncertain Path to Neutral Interest Rates
-
What’s Happening in the Markets This Week
-
Morningstar’s Guide to Investing in Stocks
-
Our Top Pick for Investing in US Renewable Energy
-
How to Measure a Stock’s Uncertainty
-
How to Determine Whether a Stock Is Cheap, Expensive, or Fairly Valued
-
Why a Company’s Management and Capital Allocation Matter
-
How to Determine What a Stock Is Worth
-
How to Measure a Company’s Competitive Advantage
-
How to Think Like a Stock Analyst