Core Viewpoint - Alcoa has finalized a $2.2 billion acquisition of Alumina Limited, which will result in Alumina shareholders owning a 31.25% stake in the combined entity, enhancing Alcoa's position in the aluminum market [1][2]. Group 1: Acquisition Details - The acquisition deal is valued at approximately $2.2 billion and was first announced last month [1]. - Alumina shareholders will receive 0.02854 Alcoa shares for each share of Alumina they own, translating to a 31.25% ownership in the new company [1]. - The acquisition is expected to be completed in the third quarter of 2024 [1][2]. Group 2: Historical Context and Joint Ventures - Alcoa and Alumina have been joint venture partners for decades through their collaboration in Alcoa World Alumina and Chemicals (AWAC), which operates globally in refining and smelting [2]. - The acquisition is seen as a strategic move to strengthen the balance sheet of the combined entity and support future growth options [2]. Group 3: Market Implications - Alcoa aims to reduce reliance on external suppliers through this acquisition, positioning itself to meet anticipated increased demand for aluminum, particularly from the renewable energy and electric vehicle sectors [3]. - Following the announcement, Alcoa's stock decreased by approximately 4% to $29.44, while Alumina's stock increased by 3.5% to $3.23 [3].

PITTSBURGH--(BUSINESS WIRE)--Alcoa (NYSE: AA or “Alcoa”) today announced that it has entered into a binding Scheme Implementation Deed (the “Agreement”) with Alumina Limited (ASX: AWC), under which Alcoa will acquire Alumina Limited in an all-scrip, or all-stock, transaction. The Agreement terms are consistent with the previously agreed and announced transaction process deed (“Process Deed”). Consistent with the Process Deed, the Alumina Limited Board of Directors has recommended that Alumina Limited sha ...

Manufacturing remains a big part of America’s economy. The U.S. today is the second largest manufacturer in the world after China. According to data from The National Association of Manufacturers, the manufacturing sector accounts for 10% of U.S. gross domestic product (GDP), employs 13 million people, and generates $1.6 trillion a year through exports of manufactured goods to other parts of the world. Americans employed in the manufacturing sector earn an average annual salary of $98,846 and 93% of them ha ...

Company Performance - Alcoa's stock closed at $26.32, reflecting a -1.42% change from the previous session, which is less than the S&P 500's daily loss of 0.17% [1] - Over the past month, Alcoa's shares have decreased by 12.77%, underperforming the Industrial Products sector's gain of 5.62% and the S&P 500's gain of 3.98% [1] - The upcoming earnings disclosure is anticipated to show an EPS of -$0.25, an 8.7% decline compared to the same quarter last year, with expected revenue of $2.54 billion, a 4.83% drop year-over-year [1] Earnings Estimates - For the entire fiscal year, the Zacks Consensus Estimates project earnings of $0.26 per share and revenue of $10.62 billion, representing increases of +111.45% and +0.62% from the prior year [2] - Recent modifications to analyst estimates for Alcoa indicate near-term business trends, with positive revisions seen as a favorable sign for the company's outlook [2] Valuation Metrics - Alcoa has a Zacks Rank of 3 (Hold), with a notable 53.96% fall in the Zacks Consensus EPS estimate over the past month [3] - The company's Forward P/E ratio stands at 104.03, significantly higher than the industry average of 13.36 [3] - Alcoa's PEG ratio is 2.63, compared to the Metal Products - Distribution industry's average PEG ratio of 3.63 [3] Industry Overview - The Metal Products - Distribution industry, part of the Industrial Products sector, holds a Zacks Industry Rank of 7, placing it in the top 3% of over 250 industries [4] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [4]

Key Points Industry and Company * **Industry**: Aluminum and alumina production * **Company**: Alcoa Corporation (NYSE:AA) * **Conference**: BMO 33rd Global Metals, Mining & Critical Minerals Conference Transaction Details * **Transaction**: Acquisition of Alumina Limited by Alcoa * **Ownership**: Alumina Limited shareholders will own 31.25% of the combined company, Alcoa shareholders will own 68.75% * **Value**: Enterprise value of approximately $2.5 billion * **Debt**: Alcoa will assume $300 million of Alumina Limited debt * **Listing**: Alcoa will list its CDIs in Australia for exchange between shares Transaction Justification * **Opportunity**: Small window of opportunity to complete the transaction due to favorable share prices * **Benefits**: * **Alumina Limited shareholders**: Premium on closing price, exposure to the entire aluminum value chain, access to new technologies * **Alcoa shareholders**: Greater exposure to upstream business, synergies, simplified equity story * **Stakeholders**: Doubling down in key locations, benefits for communities Growth Opportunities * **Near-term (3-5 years)**: Incremental growth opportunities, smelter restarts, creep projects, and small growth projects * **Long-term (10+ years)**: Breakthrough technologies (ELYsis, ASTRAEA, Refinery of the Future) Development Projects * **ELYsis**: Carbon-free aluminum manufacturing partnership with Rio Tinto and the government of Quebec * **Next milestone**: Starting commercial size sales in 2024 * **Commercialization**: Expected in 2026 * **New smelters**: Alcoa will not build new smelters without ELYsis EBITDA Improvement * **Target**: $645 million by the end of 2025 * **Actions**: * **Raw material costs**: $310 million improvement * **Advancing competitiveness**: $100 million cost reduction * **Warrick restart**: Additional 45x savings * **Alumar restart**: Incremental EBITDA * **Kwinana curtailment**: Economic benefits * **San Ciprian**: Improvements and support from stakeholders required Other Key Points * **Secondary market**: Alcoa is evaluating entry into the secondary market, focusing on ASTRAEA technology * **Energy transition**: Aluminum is critical to the energy transition, with increasing demand in electric vehicles and electric cabling * **Gallium**: Alcoa has significant gallium reserves but has not yet developed an economic extraction method * **Permitting in Western Australia**: Alcoa has received permits for continuing operations and is progressing on Part 4 permits for new mining areas

Alcoa Corporation (NYSE:AA) BMO 33rd Global Metals, Mining & Critical Minerals Conference February 27, 2024 9:30 AM ET Company Participants Bill Oplinger - President and Chief Executive Officer Conference Call Participants Katja Jancic - BMO Capital Markets Katja Jancic Good morning, everyone. Next up is Alcoa, which ranks among the largest aluminum and alumina producers globally, with assets in Australia, Europe, Iceland, South America and North America. This week, Alcoa also announced that it's going to b ...

NEW YORK, Feb. 26, 2024 (GLOBE NEWSWIRE) -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating potential claims related to the below-listed proposed mergers. Kuehn Law may seek additional disclosures or other relief on behalf of the shareholders of these companies. Kuehn Law is investigating whether the Boards of the below companies 1) acted to maximize shareholder value, 2) failed to disclose material information, and 3) conducted a fair process: Agiliti has agreed to be acquired by Thoma ...

The shares of Alcoa Corp (NYSE:AA) are sliding today, after news that the company is aiming to buy Alumina for $2.2 billion in an all-stock deal. Dropping aluminum prices are denting Alumina, and the merger would provide tax advantages to both. At last glance, AA was down 2.9% at $25.75, earlier as low as $24.86 -- its lowest level since mid December. The stock is below all moving averages between the 20-day and 320-day, with recent pressure from the former. Since last February, the equity is down 44.8%. Op ...

Key TakeawaysAlcoa shares moved lower in premarket trading Monday after the company made a $2.2 billion all-stock offer to buy joint-venture partner Alumina to expand its global mining footprint and consolidate its operations.Alcoa is offering 0.02854 of its stock for each Alumina share, representing a 13% premium to Alumina’s Friday closing price.Alcoa shares may find resistance around $34.50 from a horizontal line and support from the 2023 low at $23.07. Alcoa Corporation Source: TradingView.com.Shares ...

智通财经获悉，氧化铝生产商美国铝业公司(AA.US)已与澳大利亚合资伙伴Alumina Ltd.(AWCMY.US)进入排他性收购谈判，此前该公司提出了22亿美元的收购要约。美国铝业周一表示，已提出以0.02854股美国铝业股票换取1股Alumina股票的条件收购Alumina，较2月23日的股价溢价13.1%。Alumina董事会表示，如果双方在进一步讨论后达成最终协议，它计划支持这一收购要约。美国铝业还同意从Alumina最大股东Allan Gray Australia手中收购Alumina达19.9%的股份。 通过与美国铝业的合资企业，Alumina拥有全球最大铝生产商Alcoa World Alumina & Chemicals(AWAC)约40%的股份。美国铝业公司在另一份声明中表示，如果获得批准，该收购将增加其在"一级"铝土矿和氧化铝业务的敞口，并提升其作为一家纯粹的上游铝生产商的全球地位。 美铝首席执行官William F. Oplinger表示:“我们认识到简化所有权结构下可能创造的价值机会，包括加速实施AWAC运营和战略决策的能力。我们认为现在是巩固AWAC所有权的合适时机。” 美国铝业提出 ...