Chinalco $2600 (-7.53%) and Rio Tinto $RIO (-3.97%)
$RIO (-6.16%) are acquiring a majority stake in Brazilian aluminum producer Companhia Brasileira de Aluminio (CBA) for 4.69 billion reais (903.61 million US dollars), the companies announced on Thursday.
The transaction includes the acquisition of a 68.6% stake, corresponding to 446.6 million shares, at a price of 10.50 reais per share from the Brazilian conglomerate Grupo Votorantim.
In accordance with Brazilian regulations, the two companies will make a mandatory offer for the remaining shares of CBA, which could lead to the delisting of the company from the B3 stock exchange in São Paulo.
The investment will be managed through a joint venture in which a subsidiary of Chinalco will hold 67% and Rio Tinto the remaining 33%.
CBA operates a low-carbon, integrated aluminum production chain that includes bauxite mining, refining and smelting. The company also produces various primary aluminum products.
