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Alcoa to Buy South32’s Bauxite, Alumina and Aluminium Assets for More Than $8 Billion

The sale funds South32’s shift toward higher‑margin base metals.

A sign adorns the building where Australian miner South32 has their office in Perth, Western Australia, November 19, 2015. REUTERS/David Gray/File Photo/File Photo
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Overview

  • The agreement, announced Wednesday, July 1, 2026, has South32 accepting Alcoa’s offer to buy its global bauxite, alumina and aluminium interests in a transaction marketed at more than US$8 billion.
  • Deal terms transfer specific stakes including Worsley Alumina (86%), Hillside Aluminium (100%), MRN bauxite (33%), Brazil alumina (36%) and a Brazil smelter (40%), with upfront proceeds reported up to US$5.6 billion and additional price‑linked payments.
  • South32 said the sale will simplify its portfolio and expects about US$125 million a year in overhead savings under a leaner operating model after the transaction closes.
  • The announcement coincided with an immediate leadership change at South32, with Matt Daley appointed chief executive and Graham Kerr stepping down to serve as a strategic adviser for the transaction.
  • The deal remains subject to South32 shareholder approval and multiple regulatory clearances across jurisdictions and is targeted to complete by mid‑2027, with Alcoa and South32 committing to work with employees, communities and governments during the ownership transition.