Chinalco, Rio Tinto close to announcing purchase of Brazil’s CBA

The Aluminium Corporation of China (Chinalco) and Rio Tinto are close to announcing the purchase of control of Brazilian aluminum producer Companhia Brasileira de Aluminio, known as CBA, a source familiar with the matter told Reuters on Thursday.

Brazil’s Grupo Votorantim is selling its 69% stake in CBA, which specializes in low-carbon aluminum production, for an undisclosed amount, the same person added.

The percentage stake each company will acquire in the Brazilian aluminum producer remains unclear.

Votorantim and CBA declined to comment, while Chinalco and Rio Tinto did not immediately respond to requests for comment.

Newspaper Valor Economico reported the information earlier in the day.

CBA operates an integrated aluminum production chain, spanning bauxite mining and refining to smelting and manufacturing diverse primary aluminum products.

The company’s shares have more than doubled in the last 12 months, pushing its market capitalization to $1.27 billion as of Thursday, according to LSEG data.

The sale process also attracted interest from Emirates Global Aluminium (EGA), the UAE-based company jointly owned by Abu Dhabi’s Mubadala sovereign wealth fund and Dubai’s Investment Corporation of Dubai. However, negotiations with EGA did not advance.

Earlier this week, Reuters reported that negotiations for the sale of CBA were progressing, with Chinalco and an unnamed other company actively pursuing a deal that could be announced within days.

(By Luciana Magalhaes; Editing by Kylie Madry)