Alcoa Bids $2.2 Billion for Australian Partner to Control Assets
- Companies operate a joint venture in Western Australia
- Other bidders are unlikely, according to Morgan Stanley
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US aluminum producer Alcoa Corp. made a $2.2 billion offer to acquire its Australian joint-venture partner Alumina Ltd. to consolidate ownership of key upstream assets with long-term demand for the metal forecast to rise.
The offer marks a premium of about 13% to Alumina’s closing share price on Friday. The Australian company’s board plans to support the deal, under which Alumina shareholders will receive Alcoa stock, if the sides get to a definitive agreement following further discussions, it said in an exchange filing on Monday.