Alba to Acquire Aluminium Dunkerque, EU's Largest Aluminium Smelter, for $2.2 Billion
Details of the Acquisition Deal
Overview of the Transaction
PARIS, June 2 (Reuters) - Aluminium Bahrain (Alba) has agreed to acquire Aluminium Dunkerque, the European Union's largest aluminium smelter, in a deal valued at about $2.2 billion, the company said on Tuesday.
The transaction would give Alba full ownership of the French smelter, located near Dunkirk. At the same time, French state-backed investment bank Bpifrance is set to take a 6% stake for €100 million ($116.5 million).
Key Financial and Operational Highlights
Financing and Board Structure
• Alba said the acquisition would be fully financed by a consortium of its banking partners.
• Bpifrance will hold a seat on the board of Aluminium Dunkerque's holding company.
Production Capacity
• Aluminium Dunkerque produces around 300,000 metric tons of aluminium a year.
Strategic Agreements and Negotiations
• The agreement was unveiled alongside a memorandum of understanding with Bpifrance signed in Paris on the sidelines of the Choose France Summit.
• Alba entered exclusive talks earlier this year to acquire the smelter from U.S. investment fund American Industrial Partners.($1 = 0.8587 euros)
Additional Information
(Reporting by Hugo Lhomedet and Gus Trompiz; Editing by Thomas Derpinghaus)
