In a cross-continental play that reshapes Brazil’s aluminum landscape, Rio Tinto and Aluminum Corp. of China Ltd., known as Chalco, have agreed to acquire Votorantim’s controlling stake in Companhia Brasileira de Alumínio (CBA), valuing the producer at approximately $902.6 million.
The transaction places one of Brazil’s key aluminum platforms at the center of a high-stakes partnership between a London-based mining heavyweight and China’s state-backed metals giant.
Joint Venture Structure and Premium Offer
Under the agreement announced late Thursday, Chalco and Rio Tinto will purchase Votorantim’s 68.596% interest in CBA through a jointly owned vehicle. The venture will be controlled 67% by Chalco and 33% by Rio Tinto.
The buyers will pay 10.50 Brazilian reais per share — about $2 — in cash. The offer represents a premium of roughly 21.2% over CBA’s 20-day volume-weighted average share price through Jan. 28, signaling a deliberate move to secure control at an attractive but assertive valuation.
Once the acquisition closes, the joint venture intends to launch a mandatory tender offer for the remaining shares not held by Votorantim, in accordance with Brazilian law. That step would extend the reach of the new owners across CBA’s full shareholder base.
