Dubai: Bahrain’s Alba, aluminium smelter, plans to continue pursuing mergers and acquisitions, particularly in Europe, after it finalises its multi-billion-dollar agreement with Saudi Arabian Mining Company (Maaden).
The deal is expected to be officially signed in the first half of next year.
In September, the two companies entered a non-binding agreement and are currently undergoing a due diligence process for a potential merger, which will also require regulatory approval.
Under the terms of the agreement, Maaden would sell its entire stake in Maaden Aluminium Co. and Maaden Bauxite and Alumina Co. to Alba in exchange for newly issued shares, as reported by Saudi financial news portal Argaam.com.
Alba’s shares, which are listed in Bahrain, will also be cross-listed on the Saudi stock exchange. In September, Maaden acquired a 20.6 per cenrt stake in Alba from Saudi Basic Industries Corp. (Sabic) for around $1 billion (Dh3.67 billion).
Aluminium is a key component in products ranging from beverage cans to electric vehicle batteries. However, its production is highly energy-intensive, producing just one ton requires roughly 14,000 kilowatt-hours of energy, which is equivalent to the amount of power consumed by the average UK household over five years.
