Aluminium Bahrain B.S.C. (Alba), is a major player in Bahrain’s aluminium sector. It is expanding its global presence through strategic mergers and acquisitions in Europe.
This growth aligns with Alba’s plans for a significant multi-billion-dollar merger with the Saudi Arabian Mining Company (Maaden). It is expected to be finalized in the first half of 2025, potentially transforming the aluminum industry in the region.
The initial steps for this deal were taken in September when Alba and Maaden signed a non-binding agreement. Both companies are currently engaged in a due diligence process that involves thorough financial evaluations and obtaining necessary regulatory approvals.
The proposed deal would involve Maaden transferring its interests in Maaden Aluminium Co. and Maaden Bauxite and Alumina Co. to Alba in exchange for newly issued shares. This transaction would also facilitate Alba’s cross-listing on the Saudi stock exchange, boosting its profile in regional markets.
Earlier this year, Maaden made a significant move by purchasing a 20.6% stake in Alba from Saudi Basic Industries Corp. (Sabic) for around $1 billion (Dh3.67 billion). This acquisition is a crucial part of Maaden’s strategy to strengthen its position in the aluminum industry.
Alba stands to gain from Madden’s resources and advantageous location in Saudi Arabia. Aluminium is a vital material used across various industries globally. It is found in everyday items like beverage cans and key components in electric vehicle batteries.
However, its production is highly energy-intensive, requiring about 14,000 kilowatt-hours of energy per ton. It is equivalent to the energy consumption of an average UK household over five years.
The merger has the potential to improve production efficiency and lessen environmental impact by optimizing resource use across both companies. As Bahrain aims to establish itself as a key player in the global aluminum market, the Alba-Maaden merger highlights this ambition.
