Alba and Ma’aden delay merger to Q2 2025

Alamy

• Original deal planned for Q1
• New deadline now April 30
• Merged company largest in region

The deadline on a potential merger between Aluminium Bahrain (Alba) and subsidiaries of Saudi Arabia’s Ma’aden has been extended into the second quarter of 2025.

It had been hoped that a deal between the two manufacturing giants could be completed in the first quarter, according to Alba’s chief executive, Ali Al Baqali.

But a note on the Bahrain bourse on Sunday revealed that the non-binding agreement initially signed between Alba and Ma’aden (the Saudi Arabian Mining Company) back in September, and originally due to finish on December 31, would now carry into next year and have a new deadline of April 30.

“This extension will provide both companies with additional time to conduct a thorough due diligence and further evaluation the potential strategic and financial benefits of this potential business combination,” the posting said.

Alba is Bahrain’s largest listed company, with a market valuation of close to BHD2 billion ($5.3 billion).

It is 69.4 percent-owned by Bahrain Mumtalakat Holding Co (Mumtalakat) and 20.6 percent by Saudi Basic Industries Corporation (Sabic).

Under the draft terms of the agreement, Ma’aden would give Ma’aden Aluminium Company (MAC) and Ma’aden Bauxite and Alumina Company (MBAC) to Alba, which would issue new shares to Ma’aden.

“With the growth from Alba and the growth from Ma’aden, we will be the largest smelter in the region. At the same time, it will add a lot of advantages for both companies,” Al Baqali said in November.

Earlier this month, shareholders of Ma’aden approved a share purchase agreement to acquire Sabic’s entire stake in Alba, with the transaction valued in the region of $1 billion.

Should the merger deal go ahead it would create the seventh largest aluminium manufacturer in the world.

On October 24, Alba appointed advisors including McKinsey & Co, PwC Bahrain and Moelis & Co to assist in conducting due diligence on the proposed deal.

Alba’s stock opened on Monday at BHD1.35. Ma’aden’s stock was SAR49.15 at the beginning of trading.

• Saudi Arabia’s Ma’aden seeks $1bn private sector investment

• Ma’aden-Alba merger ‘a potential game changer’

• Bahrain’s Alba looking to Europe after Ma’aden deal

Alba reported a third-quarter profit of BHD54.5 million, up from BHD17.3 million in the previous year as revenue rose 8 percent to BHD433.5 million while costs fell slightly.

The London Metal Exchange’s aluminium price, an industry benchmark, averaged $2,383 per tonne in the third quarter, up 11 percent year on year, according to Alba.

Ma’aden, 67 percent owned by Saudi Arabia’s Public Investment Fund, made a third-quarter profit of SAR971.5 million ($258.6 million), a turnaround from a net loss of SAR83.4 million a year earlier.

Its subsidiary Ma’aden Aluminium Co’s nine-month sales were a little over SAR1 billion, while Ma’aden Bauxite and Alumina Co’s were SAR5.0 million. The two units owe SAR5.65 billion combined to the PIF.

In September Ma’aden announced a complicated deal which will increase its ownership in Ma’aden Aluminium Co and Ma’aden Bauxite and Alumina Co to 100 percent from 74.9 percent currently.