Alcoa announced that it has concluded its previously announced transaction with Camargo Correa Group to acquire its 40.9 percent shareholding in Alcoa's South American operations. As part of the transaction, Alcoa has issued approximately 17.8 million shares to the Camargo Group in exchange for their holdings. Additional consideration tied to future performance of the acquired entities over the next five years could apply, but may be offset by any appreciation in the market value of Alcoa stock during the same period.
"The acquisition increases Alcoa's stake in the low-cost, integrated power-generating/refining/smelting facilities at Sao Luis and Pocos De Caldas, providing the benefits of roughly 310,000 metric tons of alumina capacity and an additional 120,000 metric tons of smelting capacity at low capital costs," said Alcoa Chairman and CEO Alain Belda.
"This transaction will enable us to further integrate these operations with our global businesses as part of our profitable growth strategy. We will continue to work closely with the Camargo Group on hydroelectric and other projects in Brazil and throughout South America," Belda said.
This shareholding in Alcoa's South American operations includes Alcoa businesses in Brazil, Argentina, Chile, Uruguay, Peru, Colombia, and Venezuela. The largest subsidiary in the group is Alcoa Aluminio S.A., headquartered in Sao Paulo, Brazil. Aluminio operates mining, refining, smelting and fabrication facilities at various locations in Brazil. Additional businesses involved in the acquisition are closures, PET, extrusions, flat rolled products, flexible packaging, and hydroelectric concessions and generation.