Saudi Arabian giant, Ma’aden, is acquiring a 20% in Alba, as well as signing a non-binding MOU , to create one of the largest global aluminium groups.

Saudi Arabian Mining Company (Ma’aden) has agreed to acquire a 20.62% share in Aluminium Bahrain (Alba) from SABIC in a transaction valued at between SAR3.6Bn and SAR3.9Bn (US$959M and US$1Bn). Ma’aden and Alba have also entered a non-binding Heads of Terms agreement to create a global aluminium powerhouse in the region. 

The change of ownership follows an announcement that US aluminium producer, Alcoa, recently divested from its joint venture with Ma’aden, exchanging its entire 25.1% ownership for approximately US$1.1Bn in a Share Purchase and Subscription Agreement. The agreement will see Alcoa’s share in both Ma’aden Aluminium Company (MAC) and Ma'aden Bauxite and Alumina Company (MBAC), transfer to Ma’aden. In exchange, Alcoa will receive cash and newly issued Ma'aden shares, broadening its interest in the Saudi Arabian Mining Company. The Ma’aden-Alcoa joint venture was established as a fully integrated mining complex in 2009 and the share purchase and subscription agreement is expected to be finalised in H1 2025, subject to regulatory approvals Upon completion, this transaction will provide Ma’aden with full ownership and total operational and management control of MAC and MBAC. The diversion also aligns with Alcoa’s portfolio simplification strategy. 

Ma’aden and Alba, own and operate the only existing aluminium smelters in Saudi Arabia and Bahrain, each producing 1Mt and 1.6Mt of primary aluminium in 2023, respectively. The Bahrain Aluminum smelter, with its sole production, places Bahrain among the top ten global aluminium producers. The partnership will result in a more integrated bauxite production, alumina refining, and aluminium production pipeline, strengthening the security of the regional supply chain. 

Alcoa’s decision to divest its shares in Ma'aden hints at a localisation of ownership where the Middle Eastern companies are becoming even more dominant suppliers of aluminium within the region. The partnership between Ma’aden and Alba will establish the combined entity as one of the largest aluminium producers in the world. This agreement reshapes the role of the Middle East in the global aluminium landscape.