Trimet asks Brazil regulator to block Alcoa’s purchase of South32’s alumina assets
German aluminium producer Trimet has filed a request with Brazil’s competition authority (CADE) to stop Alcoa’s acquisition of South32’s alumina and bauxite assets. Trimet says the deal would cut Brazil’s independent smelter‑grade alumina suppliers from three to two and give the combined company about 52% of third‑party sales. It also warns that Alcoa’s ownership of Alumar would rise to 90% and that Alcoa could redirect roughly 3 million tonnes of South32’s alumina to its own smelters, raising Trimet’s costs and squeezing margins.
Why it matters
If CADE blocks the transaction, Alcoa’s expansion in Brazil and Western Australia could be delayed, affecting the competitive landscape and pricing of alumina for downstream producers like Trimet. Conversely, approval could concentrate market share and potentially lift alumina benchmark prices, impacting costs for buyers.
Key facts
- 1Trimet asked Brazil’s competition authority (CADE) to block Alcoa’s acquisition of South32’s alumina and bauxite assets. mlex.com
- 2The deal would reduce the number of independent smelter‑grade alumina suppliers in Brazil from three to two. mlex.com
- 3The merged entity would control approximately 51.8% of Brazil’s merchant alumina sales. alcircle.com
- 4Alcoa’s ownership of the Alumar refinery would increase to 90% after the transaction. aluminiumtoday.com
- 5Alcoa could redirect around 3 million tonnes of South32’s alumina toward its own smelters. aluminiumtoday.com
- 6Trimet proposed asset sales in Brazil or Western Australia and greater price‑reporting transparency as remedies if the deal is not blocked. alcircle.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.