(Reuters) – U.S. aluminum company Alcoa Saudi Aramco (NYSE:) said on Sunday it will sell a 25.1% stake in its joint venture with Saudi Arabian Mining Co. (Maaden) for $1.1 billion.
Alcoa said in a statement that the deal includes approximately 86 million Maaden shares and $150 million in cash, adding that it expects the deal to close in the first half of 2025.
“This transaction simplifies our investment portfolio, enhances visibility into the value of our investments in Saudi Arabia, and provides greater financial flexibility for Alcoa,” said Alcoa CEO William Oplinger.
Alcoa said it will hold its Maaden shares for at least three years. After the deal is completed, Alcoa will own about 2% of Maaden’s currently outstanding shares.
Alcoa said the joint venture was established in 2009 as an integrated mining complex in Saudi Arabia, adding that Maaden owns the remaining 74.9% of the project.
“We look forward to future collaboration opportunities as we continue to build the mining sector into the third pillar of the Saudi economy,” said Bob Wilt, CEO of Maaden.
In July, Alcoa reported quarterly revenue of $2.9 billion, beating expectations of $2.8 billion.