Alcoa to boost stake in Eklem, become biggest aluminum firm
Times：2009-01-07 03:03:01 Author：
NEW YORK (AFP) — US aluminum giant Alcoa said Monday it had agreed to an equity swap that would boost its stake in Sweden's Elkem Aluminum and make it the sector's largest manufacturer.
Alcoa said it struck a deal with Norweigan Orkla ASA to exchange assets to get 100 percent of the Swedish firm.
Alcoa will receive Orkla's 50 percent stake in Elkem Aluminum while Orkla will receive Alcoa's 45 percent stake in the processing operation of US-based maker SAPA. The transaction is expected to be completed in the first quarter of 2009.
"The addition of these assets increases Alcoa's global smelting capacity to more than 4.7 million metric tons, making Alcoa the world's largest primary aluminum producer," Alcoa said.
The company would overtake the current world leader, Rusal of Russia.
"We will be assuming control over businesses where we are the recognized global leader ... This move makes good strategic and financial sense for both Alcoa and Orkla," Alcoa president and chief operating officer Klaus Kleinfeld said.
Alcoa said it struck a deal with Norweigan Orkla ASA to exchange assets to get 100 percent of the Swedish firm.
Alcoa will receive Orkla's 50 percent stake in Elkem Aluminum while Orkla will receive Alcoa's 45 percent stake in the processing operation of US-based maker SAPA. The transaction is expected to be completed in the first quarter of 2009.
"The addition of these assets increases Alcoa's global smelting capacity to more than 4.7 million metric tons, making Alcoa the world's largest primary aluminum producer," Alcoa said.
The company would overtake the current world leader, Rusal of Russia.
"We will be assuming control over businesses where we are the recognized global leader ... This move makes good strategic and financial sense for both Alcoa and Orkla," Alcoa president and chief operating officer Klaus Kleinfeld said.
