Chinalco and Rio Tinto (LSE:RIO) have agreed to acquire a controlling stake in Brazilian aluminium producer Companhia Brasileira de Aluminio (CBA) in a transaction valued at 4.69 billion reais, or about $904m. The deal will see the two miners purchase 68.6% of CBA, equivalent to 446.6 million shares, at a price of 10.50 reais per share from Brazilian conglomerate Grupo Votorantim.
In line with Brazilian takeover regulations, the buyers will also be required to make a mandatory offer for the remaining shares in CBA, a process that could ultimately result in the company being delisted from the B3 stock exchange in São Paulo. The acquired stake will be held through a jointly controlled vehicle, with a Chinalco subsidiary owning 67% and Rio Tinto holding the remaining 33%.
CBA operates a vertically integrated aluminium business with a relatively low-carbon footprint, spanning bauxite mining, alumina refining and aluminium smelting. Alongside its upstream assets, the company manufactures a range of primary aluminium products, positioning it as a strategic platform for the partners as demand grows for responsibly produced aluminium in global markets.
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