Saudi’s Maaden in Talks to Sell Aluminum Units to Bahrain’s Alba

(Bloomberg) -- Aluminum supplier Saudi Arabian Mining Co., which just signed a deal with Alcoa Corp., is pursuing another transaction to swap two subsidiaries for shares in a Bahrain-based rival.

Maaden, as the Saudi miner is known, would sell the entire share capital of the units — Maaden Aluminium Co., and Maaden Bauxite and Alumina Co. — to Aluminium Bahrain B.S.C., known as Alba. In exchange, Alba would issue new shares for allotment to Maaden.

The firms also agreed to seek a cross-listing of Alba shares on the Saudi stock exchange. The companies signed non-binding heads of terms, and the proposal is pending regulatory approvals, according to a statement Monday.

Maaden and Alba have become major players in the global aluminum industry in recent years, particularly in value-added products that have historically been dominated by a handful of suppliers. The expanded company would be one of the world’s biggest aluminum producers.

The threat of disruptions to shipments from Russia has caused particular anxiety among buyers in Europe, and Middle Eastern producers have provided an important alternative source of supply — although Alba and other suppliers have faced disruptions of their own.

“This partnership will elevate our competitive edge on a global scale,” Maaden Chief Executive Officer Bob Wilt said. “Maaden and Alba will provide access to a more expansive and reliable supply of aluminum.”

Maaden plays an important role in Saudi Arabia’s strategy to develop into a key supplier of the metals and minerals needed for the energy transition.

On Sunday, the company signed a deal with Alcoa Corp. to purchase its holdings in a bauxite facility and an aluminum smelter for $1.1 billion of cash and stocks.

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