Alba, Saudi Maaden announce non-binding agreement to explore potential business combination

Manama, The Board of Directors of Aluminium Bahrain (Alba) approved to enter into a non-binding agreement with Saudi Arabian Mining Company (Maaden) to commence due diligence towards a potential business combination involving segments of Maaden's aluminium strategic business unit. This potential combination will reshape the global aluminium industry, positioning the merged entity as one of the largest aluminium producers worldwide. This partnership will create a larger, vertically integrated global champion with significant synergies offering advantages such as expanded production capacity; enhanced global presence; improved ESG performance; greater energy security; and significant shareholder value creation. Khalid Al Rumaihi, Alba's Chairman of the Board, said that the potential partnership would accelerates Alba's growth strategy, creating a global champion and cementing our position as the largest regional aluminium producer. "This combination will allow both companies to scale-up production, extend o ur global presence and explore new opportunities in clean energy. Our partnership will not only deepen the strong ties between Bahrain and Saudi Arabia, but also contribute to Bahrain's economic diversification and job creation. This is a compelling proposition and an exciting moment for Alba, Ma'aden, and our respective stakeholders, and we look forward to sharing further updates in due course". Bob Wilt, Ma'aden Chief Executive Officer, said: "Harnessing the combined scale and expertise of both businesses to forge a new global champion will not only advance Ma'aden's ambitions for aluminum but also significantly boost the economic ties between Bahrain and Saudi Arabia. By bringing together two of the region's most experienced players in the sector, we are setting the stage for stronger economic growth, enhanced job creation, and increased aluminum production capacity. This partnership will elevate our competitive edge on a global scale. Our continued commitment to our customers underpins this venture, ensu ring that together, Ma'aden and Alba will provide access to a more expansive and reliable supply of aluminum. I look forward to working together with Alba as we better understand the ways in which we can come together to leverage this opportunity to deliver value for our employees, investors and economies." During the due diligence period, both companies will exchange information and evaluate the strategic and financial benefits of a business combination. There is no assurance that these discussions will lead to a definitive agreement or a completed transaction. As part of the discussions on the non-binding agreement, Alba and Ma'aden discussed, among other things, the potential transaction structure for implementing their proposed business combination and the potential cross-listing of Alba on the Saudi Exchange. Subject to regulatory approvals (including, without limitation, the Central Bank of Bahrain), corporate approvals, confirmatory due diligence, and valuation assessments, the proposed structure wo uld involve Ma'aden making an in-kind contribution. This would include Ma'aden contributing the entire share capital of two of its subsidiaries, Ma'aden Aluminium Company (MAC) and Ma'aden Bauxite and Alumina Company (MBAC), along with contractual rights concerning the marketing and sale of products produced by MAC, to Alba. In exchange, Alba would issue new shares to be allotted to Ma'aden. Alba and Ma'aden have also agreed to discuss the cross-listing of Alba on the Saudi Exchange during the next phase of the proposed business combination. Alba emphasises that the transaction is subject to, without limitation, confirmatory due diligence, receipt of all corporate (board and shareholder) and regulatory approvals and signing of definitive agreements. Alba will provide further information to the market and regulators as appropriate. Source: Bahrain News Agency