The Saudi Arabian Mining Company (Maaden) has announced a major strategic acquisition, marking a transformative milestone in its growth and operational consolidation. As outlined in a recently issued Shareholders Circular, Maaden will acquire 100% ownership of Maaden Aluminium Company (MAC) and Maaden Bauxite and Alumina Company (MBAC), both previously co-owned with Alcoa Corporation entities.
The acquisition will be executed through a capital increase from SAR 38.03 billion to SAR 38.89 billion, by issuing 85,977,547 new ordinary shares, representing an equity increase of 2.26%. These shares—referred to as “Consideration Shares”—will be allocated to Alcoa Saudi and AWA Saudi, in exchange for their respective 25.1% stakes in MAC and MBAC.
In addition to the share issuance, Maaden will make a cash payment of SAR 562.5 million to AWA Saudi. The total market value of the share-based component of the transaction is estimated at SAR 3.56 billion based on the 30-day volume-weighted average price of SAR 41.44 per share.
Post-transaction, Maaden will become the sole owner of MAC and MBAC, both key players in the regional aluminum value chain. MAC, with a capital of SAR 6.57 billion, and MBAC, capitalized at SAR 5.1 billion, will be fully integrated under Maaden's operational control.
Maaden’s CEO Robert Wilt commented:
“This acquisition marks a significant step forward in our strategy to strengthen Maaden’s position in the aluminum sector and Saudi Arabia’s broader mining ecosystem. Full ownership of MAC and MBAC enhances our operational efficiency and opens new avenues for value creation.”
Following the capital increase, the ownership of Maaden’s existing shareholders will adjust slightly, with the Public Investment Fund (PIF) remaining the majority shareholder at 63.78%, while Alcoa Saudi and AWA Saudi will hold 1.74% and 0.47% respectively.
The transaction is subject to final shareholder approval at Maaden’s upcoming Extraordinary General Meeting (EGM) scheduled for June 24, 2025. Regulatory approvals from the Capital Market Authority (CMA), Saudi Exchange (Tadawul), and relevant ministries have already been secured.
Financial advisory for the transaction was provided by SNB Capital, with legal counsel by AS&H Clifford Chance.
This move is aligned with Maaden’s long-term strategy to enhance its vertical integration, support Vision 2030’s goal of economic diversification, and develop the Kingdom’s mining sector into a global leader.
📄 To access the full Shareholders Circular, please click here
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