en.Wedoany.com Reported - Australian miner South32 Ltd. has signed a binding agreement to sell the majority of its aluminum value chain assets to Alcoa Corporation, subject to certain conditions, with an enterprise value of up to $5.6 billion. The assets being sold include Brazil Alumina and Brazil Aluminium operations in Brazil, the Worsley Alumina bauxite mine and alumina refinery in Western Australia, and the Hillside Aluminium smelter in South Africa, excluding the Mozal Aluminium smelter in Mozambique.

The consideration includes $3.1 billion in cash, approximately $1 billion in Alcoa shares, the assumption of about $750 million in net debt and lease liabilities, and up to $750 million in contingent payments, with the exact amount depending on future alumina and aluminum prices. Additionally, Alcoa will assume approximately $1.2 billion in obligations related to environmental remediation and mine closure.

South32 stated that this divestment will simplify its portfolio, allowing it to focus on higher-margin businesses such as copper, and will continue to advance the Sierra Gorda expansion in Chile and the development of the Hermosa project in the United States.

Alcoa noted that this acquisition will strengthen its position as an integrated producer of bauxite, alumina, and aluminum, expand its operations in Australia, Brazil, and South Africa, and generate synergies with a net present value of approximately $900 million. The company expects the transaction to have an immediate positive impact on its earnings and cash flow upon completion.

The transaction is expected to close in the second half of 2027, subject to approval from South32 shareholders and relevant regulatory authorities.