SABIC, a Saudi-based global diversified chemicals company, has signed an agreement with Saudi Arabian Mining Company (Ma'aden) for the sale of its 20.62% shareholding in Aluminum Bahrain (Alba). 

 

The sales proceeds are expected to be within a range of BD363 million ($963.45 million) to BD398 million ($1,056.34 million), said a statement.  

 

The completion of this transaction is conditional upon obtaining all regulatory approvals from the relevant authorities in Saudi Arabia and Bahrain and after satisfaction of certain customary conditions set out in the Share Purchase Agreement. 

 

Abdulrahman Al-Fageeh, SABIC CEO, said: “We value our fruitful partnership with Alba over the years, which has contributed significantly to Sabic’s growth. Once this transaction is finalised, we will be better positioned to reinforce our strategy to become the preferred world leader in chemicals and support the successful realization of Saudi Vision 2030.”

 

When completed, the transaction will enable SABIC to optimise its portfolio, focus on its core business, and further strengthen its growth in the chemicals industry. It will contribute to improved returns and the reallocation of capital to opportunities with higher margins, a statement said.

 

The move comes on the heels of Alba on Monday announcing a non-binding agreement with Maaden to commence due diligence towards a potential business combination involving segments of Maaden’s aluminium strategic business unit. 

 

This potential combination will reshape the global aluminium industry, positioning the merged entity as one of the largest aluminium producers worldwide. This partnership will create a larger, vertically integrated global champion with significant synergies offering advantages such as expanded production capacity; enhanced global presence; improved ESG performance; greater energy security; and significant shareholder value creation, Alba said.

 

In yet another development on Sunday, US aluminium maker Alcoa said it would sell a 25.1% stake in a joint venture with Ma'aden to the Saudi company for $1.1 billion.

 

The transaction includes approximately 86 million shares of Ma’aden and $150 million in cash, Alcoa said in a statement, adding that it expects to close the deal in the first half of 2025.

 

"The transaction simplifies our portfolio, enhances visibility in the value of our investment in Saudi Arabia and provides greater financial flexibility for Alcoa," Alcoa CEO William Oplinger said.– TradeArabia News Service