U. S. Aluminum Giant Alcoa Bids for Africa's Largest Smelter in South Africa
Alcoa plans to acquire South32's aluminum business, including South Africa's Hillside smelter, in a transaction valued at up to $5. 6 billion. The deal would significantly expand Alcoa's global aluminum production and strengthen its integrated operations from mining to smelting. The acquisition still requires shareholder and regulatory approval in Australia and. . .
Alcoa plans to acquire South32's aluminum business, including South Africa's Hillside smelter, in a transaction valued at up to $5. 6 billion. The deal would significantly expand Alcoa's global aluminum production and strengthen its integrated operations from mining to smelting. The acquisition still requires shareholder and regulatory approval in Australia and South Africa. Alcoa Corporation is set to acquire South Africa's Hillside, Africa's largest aluminum smelter, under a deal worth up to $5. 6 billion for a portfolio of aluminum assets owned by Australian mining group South32. South32 announced the proposed transaction on Wednesday, July 1. Beyond Hillside, the agreement covers its stake in the Worsley Alumina refinery in Australia and three Brazilian assets: the MRN bauxite mine, an alumina refinery, and an aluminum smelter. The transaction includes $3. 1 billion in cash at closing, $1 billion in Alcoa shares, the transfer of certain liabilities tied to the assets, and an additional payment of up to $750 million tied to aluminum prices through 2030. In a separate statement, Alcoa said the acquisition would add a portfolio of high-quality, low-cost mining, refining, and smelting assets across several regions, strengthening its fully integrated aluminum business while supporting its long-term growth strategy. Hillside is the centerpiece of the deal. In addition to being Africa's largest aluminum smelter, South32 describes it as the largest in the Southern Hemisphere. The facility produced 718,000 tons of aluminum during South32's 2025 fiscal year, which ran from July 1, 2024, to June 30, 2025. Alcoa estimates that, on a pro forma basis, the combined portfolio would have produced about 3. 2 million tons of aluminum in 2025, compared with the 2. 31 million tons generated by its existing operations in Norway, Brazil, and Spain. The acquisition would also give Alcoa control of one of South Africa's most important industrial assets. Hillside employed more than 2,300 people, including contractors, in 2024 and supported an estimated 27,400 indirect jobs across the economy. The transaction remains subject to several conditions, including approval by South32 shareholders and regulators in both Australia and South Africa. The parties have until June 29, 2027, to complete the transaction. If the required approvals are not secured by then, either side will have the right to terminate the agreement. Meanwhile, South32 is continuing a separate process to sell its other major African aluminum asset, the Mozal smelter in Mozambique, the second-largest aluminum smelter on the continent. Aurel Sèdjro Houenou