Rio Tinto and China's Chalco Forge Joint Venture to Seize Control of Brazil's CBA in $900M Deal

In a significant move to expand their influence in the green metals market, Anglo-Australian mining leader Rio Tinto and China's aluminum champion, Chalco, have joined forces to acquire a controlling interest in Brazil's Companhia Brasileira de Alumínio (CBA). The deal, structured through a newly formed joint venture, will see Chalco take a 67% stake and Rio Tinto 33%, purchasing Votorantim's 68.596% shareholding for an estimated $902.6 million (4.69 billion reais).

The acquisition price of 10.50 reais per share represents a substantial 21.2% premium over CBA's average share price in the preceding 20 trading days. Upon completion, the JV is obligated under Brazilian law to launch a mandatory tender offer for CBA's remaining publicly traded shares.

Analysts view this partnership as a strategic play to secure a prime position in the Atlantic region's low-carbon aluminum supply chain. CBA operates a fully integrated production system in Brazil, powered predominantly by a 1.6-gigawatt renewable energy portfolio comprising 21 hydroelectric plants and wind farms. Its assets include three bauxite mines with an annual output of roughly two million tonnes, an alumina refinery, and an aluminum smelter, primarily serving the domestic Brazilian market.

"This acquisition is perfectly aligned with our strategy to grow our footprint in low-carbon, renewable-powered aluminum in fast-growing markets," stated Jérôme Pécresse, CEO of Rio Tinto's Aluminium and Lithium division. "Partnering with Chalco combines our operational and technical strengths, unlocking value for all stakeholders and enhancing our bauxite and alumina presence in the Atlantic basin."

The transaction, pending regulatory approvals, could be followed by a delisting tender offer for CBA. Rio Tinto confirmed its fully-owned subsidiary, Rio Tinto International Holdings, will hold its stake in the JV.

Industry Voices React:

Mariana Silva, Commodities Analyst (São Paulo): "This is a logical consolidation. CBA's hydro-powered assets are a crown jewel in today's market. For Chalco, it's a strategic foothold in South America; for Rio Tinto, it's a lower-risk entry via partnership, diversifying their geographic and operational mix."

David Chen, Portfolio Manager (Hong Kong): "The premium is justified given the long-term value of green aluminum infrastructure. This JV creates a powerful entity that can potentially set benchmarks for sustainable production and compete globally on cost and carbon credentials."

Eduardo Rios, Former Union Representative (CBA Plant, Minas Gerais): "Another day, another mega-deal where workers and communities are the last to know. We're told to trust 'combined operational excellence,' but that usually means squeezing efficiencies at our expense. What guarantees do we have for local jobs and investment? This feels less like a partnership and more like an asset strip by distant giants."

Professor Anya Petrova, Energy & Materials Strategist (London): "This isn't just about aluminum; it's a chess move in the global race for critical minerals and clean industrial capacity. Controlling a vertically integrated, renewable-energy-backed producer in Brazil provides immense strategic flexibility and de-risks supply in an uncertain geopolitical climate."

The deal follows closely on Rio Tinto's recent announcement with BHP regarding a joint iron ore mining plan in Western Australia, underscoring the industry's trend towards collaboration to secure resources and share capital-intensive project risks.

This report is based on information initially published by Mining Technology.

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