The Federal Court of Australia has approved Alcoa’s acquisition of Alumina Limited, giving the green light to the $3.4 billion deal.
Alcoa shareholders gathered last week to vote on the acquisition, with almost 99 per cent voting yes.
When complete, the acquisition will strengthen Alcoa’s position as one of the world’s largest bauxite and alumina producers with increased ownership of core, Tier 1 assets.
“The strong support from our stockholders reflects their recognition of this strategic step to enhance Alcoa’s global position as a leading pure-play, upstream aluminum company,” Alcoa president and chief executive officer William F. Oplinger said.
“We are pleased to have reached this important milestone in the transaction.”
The approval from the Federal Court follows a strong quarter of growth for Alcoa, with revenue increasing 12 per cent to $2.9 billion.
“It was another fast-paced quarter at Alcoa as we approach the closing of the acquisition of Alumina Limited and continue to execute initiatives to further enhance our operations,” Oplinger said.
“Our continuous improvement focus remains high and, along with positive markets, led to stronger results for the second quarter.”
The transaction with Alumina is expected to close around August 1.
“We believe the time is right to combine our two companies,” Alumina chair Peter Day said at the time the deal was made.
“The combined entity will have a larger and stronger balance sheet, and be better able to fund the current portfolio restructuring actions in AWAC, as well as realising potential growth options in the medium to longer term.
“Alumina shareholders will participate in a leading global pure play upstream aluminium company, with a low carbon smelting portfolio.”