Alcoa Corporation (NYSE:AA, ASX: AAI))) ("Alcoa" or the "Company") today announced that it has entered into a definitive agreement to acquire South32 Limited’s (ASX: S32, LSE: S32.L, JSE: S32) ("South32") interests in bauxite mine, alumina refinery and aluminum smelter operations in a cash and stock transaction for an upfront consideration of approximately $4.1 billion. The transaction represents an implied enterprise value of approximately $4.7 billion when including net debt primarily related to normal course financing leases. Alcoa has also agreed to provide South32 with a contingent value right (CVR) of up to $750 million.

The acquisition will add a high-quality, low-cost, and globally diversified set of mining, refining and smelting assets, further strengthening Alcoa’s mine-to-metal platform, expanding its global footprint and increasing the Company’s ability to generate sustainable long-term value for shareholders. The acquisition also advances Alcoa’s disciplined, value-creating growth strategy and enhances its position as a leading pure-play upstream aluminum company with a more competitive portfolio of world-class assets in strategically important regions around the globe.