The general assembly meeting of Ma'aden approved the increase in capital and the issue of new shares to help the full ownership of the company. In this new decision made by Ma’aden, Alcoa Saudi would be receiving a 1.74 per cent stake in Ma'aden's share capital, whereas AWA Saudi would be receiving a 0.47 per cent stake.
Ma’aden has decided to purchase Alcoa’s 25.1 per cent stakes in MBAC and MAC because it wants to gain full control over aluminium value chain. It marks a pivotal moment in giving the company full ownership in every step of production-from digging raw bauxite to casting the final aluminum product for consumers. This particular step taken by the company helps to reduces the overall bottlenecks, decreases cost of production, and also allows the firm to have full control over its decision making. This vertical integration by Ma’aden not only enhances it’s financial stability but also its operational efficiency and growth across its aluminium business.
With this acquisition deal, Ma’aden positions itself as the central player in the region’s aluminium expansion. It would also help the organisation to meet the rising demand driven by infrastructure and the use of aluminium in all these sectors.
