Rio Tinto strengthens its global low-carbon aluminium footprint through joint acquisition with Chalco of Votorantim's interest in CBA

Core Viewpoint - Rio Tinto and Chalco have entered into a joint venture to acquire Votorantim's controlling stake in Companhia Brasileira de Alumínio (CBA), enhancing their low-carbon aluminium footprint in Brazil through a cash transaction valued at approximately $902.6 million [1]. Transaction Details - The joint venture will be owned 33% by Rio Tinto and 67% by Chalco, acquiring Votorantim's 68.596% shareholding in CBA at R$10.50 per share, representing a 21.2% premium over the weighted average trading price of R$8.67 for the 20 trading days prior to the agreement [1]. - Following the transaction, the joint venture will launch a mandatory tender offer for the remaining shares in CBA not held by Votorantim, as required by Brazilian law [1]. Strategic Implications - The acquisition aligns with Rio Tinto's strategy to expand its low-carbon, renewable-powered aluminium operations in rapidly growing markets, leveraging both companies' expertise across the aluminium value chain [1]. - CBA operates as a vertically integrated low-carbon aluminium business in Brazil, supported by a 1.6 GW portfolio of renewable power generation assets, including hydropower and wind power [1]. Operational Highlights - CBA has three bauxite mines with a production capacity of approximately 2 million tonnes per annum, and an aluminium complex in São Paulo with a capacity of 0.8 million tonnes for alumina and 0.4 million tonnes for aluminium smelting [1]. - The partnership aims to enhance operational excellence and innovation, creating value for shareholders, employees, customers, and local communities [1].