Saudi Arabia’s Ma’aden has signed a binding agreement with Alcoa, one of the world's largest aluminum producers, to acquire a 25.1% stake in their joint venture for roughly $1.1 billion. The deal includes approximately 86 million shares of Ma’aden, valued at $950 million, alongside $150 million in cash. This marks a significant move for Ma’aden, which views its aluminum business as a crucial pillar in expanding the kingdom's mining sector. The joint venture, formed in 2009, includes the Ma’aden Bauxite and Alumina Company and the Ma’aden Aluminium Company.

Alcoa's investment in the joint venture, valued at $545 million as of June 30, 2024, will see a shift in ownership, with Ma’aden taking a larger share. The transaction is expected to close in the first half of 2025, pending regulatory and shareholder approvals. During the holding period, Alcoa can hedge and borrow against its shares, with transferability beginning three years after the deal’s closure.