Ma’aden says Alba merger deadline extended to Q2 2025
RIYADH, 3 days ago
Saudi Arabian Mining Company (Maaden) has announced an extension of the validity period of the non-binding heads of terms with Aluminium Bahrain (Alba), by which the parties need to sign a binding agreement in relation to the proposed transaction, to the second quarter of 2025.
Maaden’s shareholders had earlier this month, given the go-ahead for the share purchase agreement for the acquisition of Sabic's entire stake in Aluminium Bahrain (Alba) with the transaction value ranging from SAR3.62 billion ($962 million) to SAR3.97 billion ($1.05 billion), according to a statement to Tadawul.
Under the draft terms, Ma’aden would transfer its subsidiaries, Ma’aden Aluminium Company (MAC) and Ma’aden Bauxite and Alumina Company (MBAC), to Alba in exchange for newly issued Alba shares. The merger, once completed, would position the combined entity as the seventh-largest aluminium manufacturer globally.
For its part, Alba announced extending the vaility of the non-binding agreement with Maaden, saying that such a period will give both companies more time to conduct due diligence in details and carry out more evaluation for possible strategic and financial benefits resulting from the merger of their businesses.
Alba’s Chairman Khalid Al Rumaihi said earlier that talks with Maaden regarding asset valuation, financial feasibility, and plans of both companies are currently in early stages, adding that the negotiations are expected to conclude in the first quarter of 2025.
He had dubbed it as the potential combination that will reshape the global aluminium industry, positioning the merged entity as one of the largest aluminium producers worldwide.
This partnership will create a larger, vertically integrated global champion with significant synergies offering advantages such as expanded production capacity; enhanced global presence; improved ESG performance; greater energy security; and significant shareholder value creation, he had stated.
Pursuant to the share purchase agreement, the consideration for the acquisition will consist of an amount paid in cash by Maaden to the seller and will be within a range of BD363.08 million ($957 million) to BD398.2 million ($1.04 billion). The agreed-upon amount will be determined in accordance with the mechanism specified in the deal.
Alba had engaged advisors, including McKinsey & Co, PwC Bahrain, and Moelis & Co, to conduct due diligence on the proposed deal.-TradeArabia News Service
