The Aluminum Corporation of China (Chinalco) and Australian mining company Rio Tinto are about to announce the acquisition of Companhia Brasileira de Alumínio, a source familiar with the matter said on Thursday.
Votorantim Group is selling its 69% stake in CBA for an undisclosed amount, the source added. The percentage stake each company will buy from CBA is not yet clear.
Votorantim and CBA did not comment, while Chinalco and Rio Tinto did not respond to questions from Reuters.
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CBA operates an integrated aluminum production chain, covering bauxite mining and refining to smelting and production of various primary aluminum products.
The company’s share price has more than doubled in the last 12 months, taking its market value to US$1.27 billion this Thursday, according to data from LSEG.
The sale process also attracted the interest of Emirates Global Aluminum (EGA), a company based in the United Arab Emirates, jointly owned by the sovereign wealth fund Mubadala, from Abu Dhabi, and the Investment Corporation of Dubai, from Dubai. However, negotiations with the EGA did not progress.
