Saudi Arabia’s Maadan, Bahrain join forces in aluminum venture
The threat of disruptions to aluminum shipments from Russia worries buyers in Europe who see Mideast producers as an important alternative
Maaden Aluminum factory in Jubail City, Saudi Arabia (Getty Images)
Saudi Arabia and Bahrain are teaming up to create one of the world’s largest producers of aluminum.
Following a separate deal this week with U.S. industry leader Alcoa, Saudi Arabian Mining Co. – known as Maaden – said on Monday it will sell the share capital of two of its units to Aluminium Bahrain.
In exchange, the Bahraini company, known as Alba, would issue new shares for allotment to Maaden, according to a statement issued by the two companies. The firms, which signed non-binding term documents, also agreed to seek a cross-listing of Alba shares on the Saudi stock exchange, pending regulatory approval.
Maaden and Alba have become major players in the global aluminum industry in recent years, particularly in value-added products that have historically been dominated by a handful of suppliers, Bloomberg reports.
The threat of disruptions to shipments from Russia has caused particular anxiety among buyers in Europe, and Middle Eastern producers have provided an important alternative source of supply, the news agency said.