Alcoa to acquire South32's bauxite, alumina, and aluminum assets for $3.1B cash plus stock

Alcoa Corp

• Total upfront consideration: $3.1B cash + ~17M Alcoa shares (valued ~$1B, ~6% ownership post-issuance).
• Up to $750M contingent consideration based on average alumina and aluminum prices over four annual periods.
• Transaction expected to close in H1 2027, subject to South32 shareholder approval and regulatory approvals.
• Alcoa secured a $3.1B bridge loan commitment from Goldman Sachs to fund cash portion if permanent financing not obtained.
• Break fees: South32 pays $41M or $82M to Alcoa in certain termination scenarios; Alcoa pays $82M to South32 in others.