Bahrain-based Aluminum Bahrain (Alba) will acquire Aluminum Dunkerque, the largest aluminum plant in the European Union (EU), for approximately $2.2 billion, the company said.
“The acquisition is a defining moment for Alba, representing a strategic step towards creating a more diversified and competitive international industrial platform“, said Khaled Al-Rumaihi, chairman of the board of directors. He added that the deal will strengthen the Bahraini company's presence in global markets.
The memorandum of understanding was signed on Tuesday in Paris on the sidelines of the Choose France investment summit. Under the terms of the deal, Alba will acquire 100% of Aluminum Dunkerque's shares from American Industrial Partners (AIP), a US investment firm. The acquisition will be fully financed by a consortium of banks partnering with the Bahraini company. As part of the agreement, French state investment bank Bpifrance will invest 100 million euros, acquiring a 6% stake in the company and a seat on the board of directors of the holding company Aluminium Dunkerque.
Alba is the world's largest single-site aluminium producer. The Aluminium Dunkerque smelter, located in Loon-Plage in northern France, is considered the largest aluminium producer in the EU, producing approximately 300,000 tonnes per year.