(Reuters) -U.S. aluminium maker Alcoa (NYSE:) mentioned on Sunday that it will promote a 25.1% stake in its Ma’aden three way partnership to Saudi Arabian mining firm Ma’aden for $1.1 billion.
The transaction contains roughly 86 million shares of Ma’aden and $150 million in money, Alcoa mentioned in an announcement, including that it expects to shut the deal within the first half of 2025.
“The transaction simplifies our portfolio, enhances visibility in the value of our investment in Saudi Arabia and provides greater financial flexibility for Alcoa,” Alcoa CEO William Oplinger mentioned.
Alcoa mentioned it will maintain its Ma’aden shares for at least three years. After finishing the transaction, Alcoa would personal roughly 2% of Ma’aden’s present shares excellent.
The three way partnership was created in 2009, as a completely built-in mining advanced in Saudi Arabia, Alcoa mentioned, including that Ma’aden owns the remaining 74.9% of the mission.
“We stay up for future alternatives to collaborate as we proceed to construct the mining sector into the third pillar of the Saudi economic system,” mentioned Bob Wilt, Ma’aden’s CEO.
In July, Alcoa posted quarterly income of $2.9 billion, beating expectations of $2.8 billion.