AcquisitionsJul 30, 2026, 04:38 PM
Alcoa to Acquire South32's AliGroup for $4.1B; Q2 Net Income $407M
AI Summary
Alcoa Corporation announced a definitive agreement to acquire South32's AliGroup, comprising bauxite, alumina, and aluminum assets, for a total consideration of approximately $4.1 billion, consisting of $3.1 billion in cash and around 17 million shares of Alcoa common stock. This strategic acquisition is expected to close in the first half of 2027. Concurrently, Alcoa reported strong financial results for the second quarter of 2026, with net income attributable to the company rising to $407 million and diluted EPS reaching $1.53, alongside a significant increase in sales. The company also formed a joint venture for a gallium production plant.
Key Highlights
- Alcoa to acquire South32's AliGroup for $3.1 billion cash and approximately 17 million shares (valued at ~$1 billion).
- The acquisition includes bauxite mines, alumina refineries, and aluminum smelters in Australia and Brazil.
- Net income attributable to Alcoa Corporation for Q2 2026 was $407 million, up from $164 million in Q2 2025.
- Diluted EPS for Q2 2026 was $1.53, compared to $0.62 in Q2 2025.
- Sales for Q2 2026 increased to $3,966 million from $3,018 million in Q2 2025.
- Aluminum segment Adjusted EBITDA for Q2 2026 was $1,073 million, a significant increase from $97 million in Q2 2025.
- Alumina segment Adjusted EBITDA for Q2 2026 was $(96) million, down from $139 million in Q2 2025.
- Alcoa contributed $24 million to a new gallium production plant joint venture in Australia.
Price Impact
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