Alcoa Closes Sale of 25% Ma’aden Stake for $1.35 Billion

Alcoa Corporation has completed the sale of its 25.1% stake in the Ma'aden Joint Venture to Saudi Arabian Mining Company (Ma'aden) for approximately $1.2 billion in Ma'aden shares and $150 million in cash, marking the end of a 16-year partnership. Alcoa will retain about 2% of Ma'aden's outstanding shares and is required to hold these shares for a minimum of three years, with options to sell portions over the subsequent three years, and may hedge or borrow against them under certain conditions. The transaction is expected to result in a gain of approximately $780 million in Alcoa's third-quarter 2025 financials, classified as a special item. Ma'aden increased its capital by issuing new shares to facilitate the acquisition, raising its capital from SAR 38.03 billion to SAR 38.89 billion, reflecting a 2.26% increase. The Ma'aden Joint Venture, established in 2009, consists of integrated mining operations including bauxite mining, alumina refining, and aluminum smelting in Saudi Arabia. Alcoa's CEO William F. Oplinger expressed gratitude for the partnership and noted that the transaction provides immediate shareholder value while allowing for future monetization opportunities.