South32 has agreed to sell most of its aluminum assets to Alcoa in a
cash-and-stock deal implying enterprise value up to $5.6 bln. The package
includes Worsley aluminum (Australia), Hillside aluminum (South Africa), MRN
bauxite mines (Brazil) and equity in a Brazilian aluminum refinery and aluminum
smelter. Alcoa will assume about $1.2 bln of remediation and closure
liabilities. The transaction is expected to close in H2 2027; South32 plans an
approximately $500 mln tax-free special dividend thereafter. Alcoa says the deal
should deliver roughly $900 mln NPV of synergies from optimizing complementary
assets.
