Alcoa to get US$1.1bil for stakes in Saudi aluminium plants

Saudi Arabian Mining Co. will wholly own its aluminum business, and Alcoa will hold a 2.2% stake in Maaden once the deal is completed.Photographer: Luke Sharrett/Bloomberg

Riyadh: Alcoa Corp will receive US$1.1bil in cash and stock in Saudi Arabian Mining Co as part of a deal that will involve the Pittsburgh-based firm selling its stake in two metals plants in northern Saudi Arabia.

Maaden, as the Saudi firm is known, signed a deal with Alcoa to purchase its holdings in a bauxite facility and an aluminium smelter for 563 million riyals or about US$150mil in cash and 3.6 billion riyals of stock in the Riyadh-based miner, according to a statement.