Alba embarks on European M&A expansion
Deal News | Nov 05, 2024 | EIN
Bahrain's Aluminium Bahrain B.S.C. (Alba), one of the world's largest aluminium smelters, is planning to expand its mergers and acquisitions activities in Europe following its significant deal with the Saudi Arabian Mining Company (Maaden). The companies have signed a non-binding agreement and are now conducting due diligence, anticipating the official signing within the first half of the upcoming year. Under this deal, Maaden will sell its stakes in Maaden Aluminium Co. and Maaden Bauxite and Alumina Co. to Alba in exchange for new shares, positioning Alba for cross-listing on the Saudi stock exchange. This strategic move comes after Maaden acquired a 20.6% share in Alba from Saudi Basic Industries Corp. (Sabic) for approximately $1 billion. Aluminium, being a key component in various industries, further emphasizes the importance of this deal amid challenges from its energy-intensive production process.
Sectors
- Metals & Mining
- Energy
Geography
- Bahrain – Alba, central to the article, is headquartered in Bahrain and is a pivotal player in the nation's industrial sector.
- Saudi Arabia – The deal involves Saudi Arabian company Maaden and relates to transactions between Bahrain and Saudi-based entities.
- Europe – Alba aims to expand its M&A activities into the European markets, marking this as a significant geographical focus.
Industry
- Metals & Mining – The article discusses Aluminium Bahrain B.S.C. (Alba) and its M&A activities, primarily focusing on aluminium production and related operations in the metals and mining sector.
- Energy – Aluminium production is highlighted as energy-intensive, which is significant for stakeholders in the energy sector due to its impact on energy consumption and demand.
Financials
- $1 billion – This is the amount Maaden paid to acquire a 20.6% stake in Alba from Sabic.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Aluminium Bahrain B.S.C. (Alba) | Target Buyer | Company | Alba is a leading aluminium smelter in Bahrain, seeking to expand its European presence through acquisitions. |
| Saudi Arabian Mining Company (Maaden) | Target Seller | Company | Maaden is a major mining and metals company in Saudi Arabia, looking to sell its aluminium assets to Alba. |
| Maaden Aluminium Co. | Subsidiary | Company | A subsidiary of Maaden related to aluminium operations to be acquired by Alba. |
| Maaden Bauxite and Alumina Co. | Subsidiary | Company | A Maaden subsidiary focused on bauxite and alumina production, included in the Alba acquisition deal. |
| Saudi Basic Industries Corp. (Sabic) | Vendor | Company | Sabic was the previous owner of the 20.6% stake in Alba which Maaden acquired. |