Global law firm Ashurst Perkins Coie is advising Alcoa Corporation on its proposed acquisition of South32 Limited's interests in bauxite mine, alumina refinery and aluminum smelter operations in a cash and stock transaction for an upfront consideration of approximately US$4.1 billion. Including lease-related debt assumed by Alcoa, the transaction represents an implied enterprise value of approximately US$4.7 billion. Alcoa has also agreed to provide South32 with a contingent value right of up to US$750 million.
Under the terms of the agreement, Alcoa will acquire South32’s interests in the Boddington bauxite mine and reserves and the Worsley alumina refinery in Western Australia, the Hillside aluminum smelter and idled Bayside smelter property in South Africa, the Mineração Rio do Norte bauxite mine, and the Alumar alumina refinery and aluminum smelter in Brazil. The transaction will exclude South32’s Mozal aluminum smelter in Mozambique. The proposed acquisition will add a high-quality, low-cost, and globally diversified set of mining, refining and smelting assets, further strengthening Alcoa’s mine-to-metal platform, expanding its global footprint and increasing Alcoa's ability to generate sustainable long-term value for shareholders.
The transaction is expected to close in the first half of 2027, subject to the approval of South32’s shareholders, the receipt of required regulatory approvals, and the satisfaction of certain other customary closing conditions.
Partner Kylie Lane said:
"We are delighted to be advising Alcoa on this landmark transaction which, when completed, will significantly expand its portfolio of world-class bauxite, alumina and aluminum assets across three continents. We are proud to support Alcoa as it strengthens its position as a leading pure-play upstream aluminum company."
The Ashurst Perkins Coie team is being led by partners Kylie Lane and Eliza Blandford with support from senior associate Jonathan Bisset (Corporate transactions); partner Ian Kellock (Tax); partner Andrew Craig (Tech transactions); partner Justin Jones (Antitrust & Competition); partner Jeff Lynn (Projects, energy, environment & resources); and partners Jon Lovell and Julia Sutherland (Employment).
