SABIC, a leading global diversified chemicals company based in Saudi Arabia, has entered into an agreement with Saudi Arabian Mining Company (Ma’aden) for the sale of its 20.62% shareholding in Aluminum Bahrain (Alba). This significant transaction, valued between BD363 million ($963.45 million) and BD398 million ($1,056.34 million), marks an important step in reshaping the aluminium industry.
According to a statement, the completion of this sale is contingent on receiving regulatory approvals from relevant authorities in Saudi Arabia and Bahrain, along with the fulfillment of customary conditions outlined in the Share Purchase Agreement.
Abdulrahman Al-Fageeh, CEO of SABIC, commented on the sale: “Our partnership with Alba has been a key driver of SABIC’s growth. Upon finalization of this transaction, we will be well-positioned to strengthen our strategy, focusing on our core chemicals business, while contributing to Saudi Vision 2030.”
This transaction aligns with SABIC’s goals of optimizing its portfolio and concentrating on its core chemicals business, which will enhance the company’s ability to deliver better returns and reallocate capital toward higher-margin opportunities.
The deal comes shortly after Alba’s announcement of a non-binding agreement with Ma’aden. The two companies plan to begin due diligence for a potential business combination, which would involve segments of Ma’aden’s aluminium business unit. This merger could have a transformative effect on the global aluminium industry, potentially positioning the combined entity as one of the largest aluminium producers worldwide.
The partnership between Alba and Ma’aden is set to create a vertically integrated global powerhouse. This collaboration is expected to bring about numerous synergies, including increased production capacity, enhanced global presence, improved ESG performance, greater energy security, and significant shareholder value creation.
In a related move, US-based aluminium producer Alcoa announced on Sunday that it would sell a 25.1% stake in its joint venture with Ma’aden to the Saudi company for $1.1 billion. This transaction, which includes 86 million shares of Ma’aden and $150 million in cash, is expected to be completed by the first half of 2025.
These developments reflect significant shifts within the global aluminium industry, as key players like Ma’aden and SABIC reposition themselves for future growth and influence.
