SYDNEY, July 1 (Xinhua) -- Australian miner South32 on Wednesday announced it will sell most of its aluminium assets to U.S. aluminium producer Alcoa in a deal worth up to 5.6 billion U.S. dollars.
South32 said in a statement that Alcoa will acquire its controlling interest in a bauxite mine and alumina refinery in Western Australia (WA), as well as 100 percent of the Hillside smelter in South Africa, the largest aluminium smelter in the southern hemisphere.
The WA-based miner said that the deal has an implied enterprise value of up to 5.6 billion dollars and includes 3.1 billion dollars in upfront cash.
In addition to the assets in WA and South Africa, Alcoa will also acquire South32's minority stakes in a bauxite mine, alumina refinery and aluminium smelter in Brazil.
Matt Daley, who assumed the role of chief executive officer and managing director of South32 on Wednesday, said the company's portfolio would be focused on long-life assets after the completion of the deal.
The deal is subject to final approval from shareholders and regulatory bodies by June 2027. ■
