Rio Tinto and Aluminum Corporation of China Limited (Chalco) have entered into a definitive agreement with Votorantim to acquire, through a joint venture to be owned 33% by Rio Tinto and 67% by Chalco, Votorantim’s 68.596% controlling shareholding in Companhia Brasileira de Alumínio (CBA), a vertically integrated low-carbon aluminium business in Brazil.
The transaction values Votorantim’s shareholding in CBA at approximately $902.6 million, subject to closing adjustments and the other terms of the transaction agreement, including satisfaction of regulatory approvals and customary closing conditions. Following closing, the joint venture will launch a mandatory tender offer for the remaining shares in CBA not held by Votorantim, as required by Brazilian law.
The transaction will leverage Rio Tinto and Chalco’s deep and complementary expertise across the aluminium value chain to unlock the next phase of growth at CBA, Rio Tinto says.
CBA is a vertically integrated low-carbon aluminium business in Brazil, supported by a 1.6 GW portfolio of renewable power generation assets, including 21 hydropower plants and wind power complexes. It serves primarily the growing domestic market, with competitive low-carbon products and operations powered by 100% renewable electricity. CBA has three bauxite mines in production with current production of approximately 2 Mt/y of bauxite, and an aluminium complex in São Paulo (the Alumínio Complex), encompassing a 800,000 t/y capacity alumina refinery, an approximately 400,000 t/y capacity aluminium smelter, secondary recycling capacity of 300,000 t/y and downstream processing facilities.
Rio Tinto Aluminium & Lithium Chief Executive, Jérôme Pécresse, said: “This acquisition, jointly with Chalco, of Votorantim’s controlling position in CBA’s fully integrated aluminium supply chain in Brazil is aligned with our strategy to deliver value for shareholders by extending our low-carbon, renewable-powered aluminium footprint in rapidly growing markets. It also provides the opportunity to grow our bauxite and alumina supply chain in the Atlantic region.
“Our partnership with Chalco brings together our combined operational excellence, innovation and unique project execution capabilities, unlocking the potential to create value for the benefit of our shareholders, as well as CBA’s employees, customers and local communities.”
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