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Saudi Ma’aden, Bahrain’s Alba to Create Mutual Force in Global Aluminum Market

Saudi Arabian Mining Co., known as Ma’aden, has signed a non-binding agreement with Aluminium Bahrain (Alba) to create a potential major global aluminium entity, reported Arab News.

Mutual Force

The agreement includes several plans to establish a force in the global aluminum market through merging Ma’aden’s aluminum operations with Alba’s.

“Harnessing the combined scale and expertise of both businesses to forge a new global champion will not only advance Ma’aden’s ambitions for aluminum but also significantly boost the economic ties between Bahrain and Saudi Arabia,” Ma’aden CEO Bob Wilt said.

Potential Merge

Thus, both entities will have the opportunity to make use of over 75 years of combined operational and financial expertise to foster their competitive edge worldwide.

“By bringing together two of the region’s most experienced players in the sector, we are setting the stage for stronger economic growth, enhanced job creation, and increased aluminum production capacity. This partnership will elevate our competitive edge on a global scale,” Wilt added.

Agreement Terms

According to the deal, Ma’aden will transfer the entire share capital of Ma’aden Aluminum Co. and Ma’aden Bauxite and Alumina Co. to Alba, including the rights to market and sell products from Ma’aden Aluminum Co.

Moreover, Ma’aden will acquire newly issued shares in Alba.

Ma’aden has nominated Merrill Lynch Kingdom of Saudi Arabia as its financial adviser and AS&H Clifford Chance as its legal adviser. Alba has appointed Moelis & Co. UK LLP as its financial adviser.

A bourse filing explained that further details regarding the number of shares and Ma’aden’s ownership stake in Alba will be determined later on.

“Our partnership will not only deepen the strong ties between Bahrain and Saudi Arabia but also contribute to Bahrain’s economic diversification and job creation. This is a compelling proposition and an exciting moment for Alba, Ma’aden, and our respective stakeholders, and we look forward to sharing further updates in due course,” Alba Chairman Khalid Al-Rumaihi said.

Another Possibility

The deal will remain valid until Dec. 31 and includes the possibility of a cross-listing on the Saudi Stock Exchange.

Completing that deal is not guaranteed and depends on the satisfactory conclusion of financial, tax, legal, technical, and commercial evaluations, and obtaining necessary regulatory and corporate approvals.

 

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