Alcoa Q3 Earnings Call Highlights AliGroup Deal and Cost Pressures

Trimet has asked Brazil's competition authority to block Alcoa's acquisition of South32's alumina and bauxite assets, citing concerns over reduced competition and supply. The deal would increase Alcoa's ownership of Alumar to 90% and give it control of Worsley. Trimet seeks alternative measures if the deal isn't blocked, as it could raise its costs and reduce profit margins.

Workers at South32's Worsley alumina refinery in Australia struck for 48 hours, demanding pay security ahead of a $4.1 billion takeover by Alcoa. The strike involves maintenance and operational staff seeking guarantees on pay rates and working conditions. Alcoa's acquisition aims to expand its global footprint, with the Worsley refinery being a key asset. The strike may disrupt production, but contingency plans are in place.

Trimet proposes measures to address competition concerns over Alcoa's acquisition of South32's alumina and bauxite assets, including asset sales and greater price transparency. Trimet asks Brazil's CADE to block the deal, citing reduced independent alumina supply and potential market share concentration. The combined entity could control 51.8% of Brazil's merchant alumina sales and 52.66% of the wider Western market. Trimet warns of potential supply reductions and higher production costs.

Alcoa (AAI) announced its $8B acquisition of South32's (S32) aluminium portfolio is on track for 2027. The deal includes cash, shares, and price-linked payments. Alcoa secured $2.6B in funding. Assets include Worsley Alumina, Hillside smelter, and Brazilian operations. Regulatory approvals are pending.

South32 expects to complete the sale of its aluminium assets to Alcoa by June 2027 for up to $5.6 billion. The deal includes operations in South Africa, Australia, and Brazil. South32's Q3 2026 aluminium production remained steady, with Hillside producing 179,000 tonnes. The company also reported increased manganese and copper production.

Brazil's competition authority, CADE, is reviewing Alcoa's proposed $4.1 billion acquisition of South32's bauxite, alumina, and primary aluminum business, which includes mining and production assets in Brazil, Australia, and South Africa.