Alcoa shareholders have gathered to vote on the company’s takeover of Alumina Limited, with around 99 per cent voting to close the deal at the start of August.
The proposed acquisition, when complete, will strengthen Alcoa’s position as one of the world’s largest bauxite and alumina producers with increased ownership of core, Tier 1 assets.
“The strong support from our stockholders reflects their recognition of this strategic step to enhance Alcoa’s global position as a leading pure-play, upstream aluminum company,” Alcoa president and chief executive officer William F. Oplinger said.
“We are pleased to have reached this important milestone in the transaction.”
Alumina shareholders are set to vote on the takeover scheme today, July 18. The scheme will then be put before the Federal Court of Australia for approval, at a hearing scheduled for July 22 2024.
The transaction is expected to close around August 1.
“We believe the time is right to combine our two companies,” Alumina chair Peter Day said at the time the deal was made.
“The combined entity will have a larger and stronger balance sheet, and be better able to fund the current portfolio restructuring actions in AWAC, as well as realising potential growth options in the medium to longer term.
“Alumina shareholders will participate in a leading global pure play upstream aluminium company, with a low carbon smelting portfolio.”
Looking ahead to the rest of 2024, Alcoa confirmed its outlook for aluminium and alumina production and shipments were unchanged.
The company expects to produce up to 10 million tonnes (Mt) of alumina over the year, with shipments climbing towards 12.9Mt.
Aluminium production is anticipated to reach 2.3Mt for the quarter, with shipments tipped to total 2.6Mt.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
