Rio Tinto Plc and China’s Aluminum Corporation of China Limited (Chalco) have agreed to purchase Votorantim’s 68.596% controlling stake in Companhia Brasileira de Alumínio (CBA) for a total of approximately $902.6 million. Rio Tinto will contribute $297.8 million, while Chalco will provide the remaining $604.8 million. The transaction will create a joint venture in which Rio Tinto holds 33% and Chalco 67%, and the venture will launch a mandatory tender offer for the remaining CBA shares once regulatory approvals are obtained.
The deal deepens Rio Tinto’s low‑carbon aluminium footprint by adding a vertically integrated, renewable‑powered operation that produces about 2 million tonnes of bauxite per year, refines 0.8 million tonnes of alumina, and smelts 0.4 million tonnes of aluminium annually. CBA’s 1.6 GW of renewable power—comprising 21 hydropower plants and wind installations—supports the entire value chain, positioning the joint venture to meet growing demand for sustainable aluminium in electric‑vehicle, aerospace, and electronics markets.
Regulatory clearance is expected to take 140–200 days, a typical timeline for large foreign‑investment approvals in Brazil. The acquisition also unlocks the Rondon bauxite project, a US$2.5 billion investment that Votorantim struggled to finance amid falling aluminium prices and high domestic interest rates. The sale attracted interest from other global players, including Emirates Global Aluminium, underscoring the strategic value of Brazil’s low‑carbon aluminium assets.
Rio Tinto’s chief executive, Jérôme Pécresse, said the partnership “extends our low‑carbon, renewable‑powered aluminium footprint in a rapidly growing market and strengthens our bauxite and alumina supply chain in the Atlantic region.” He added that the joint venture will combine operational excellence and innovation to accelerate the transition to a low‑carbon aluminium industry.
The transaction aligns with Chalco’s strategy to expand overseas operations and secure low‑carbon aluminium assets, while also reinforcing Rio Tinto’s focus on future‑facing metals and decarbonization. Together, the companies will control a production capacity that can meet the projected rise in demand for aluminium in emerging markets, potentially reshaping the competitive landscape in Brazil and beyond.
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