Chinalco and Rio Tinto Acquire Controlling Stake in Brazil’s CBA for $903 Million

Aluminium Corporation of China (Chinalco) and global mining giant Rio Tinto have agreed to acquire a controlling stake in Companhia Brasileira de Alumínio (CBA), marking one of the most significant aluminium sector deals in Brazil in recent years. According to regulatory filings released late Thursday in Brazil, the two companies will invest 4.69 billion reais, equivalent to approximately $903.61 million, to secure control of the Brazilian aluminium producer.

Under the terms of the agreement, Chinalco and Rio Tinto will jointly purchase 446.6 million shares, representing a 68.6% stake in CBA, at a price of 10.50 reais per share. The shares will be acquired from Grupo Votorantim, one of Brazil’s largest industrial conglomerates and CBA’s current controlling shareholder. The acquisition price reflects a modest 1.4% premium over CBA’s closing share price on Thursday, signaling a deal largely aligned with prevailing market valuations.

Following the transaction, the stake in CBA will be held through a joint venture structure, with a Chinalco subsidiary owning 67% and Rio Tinto holding the remaining 33%. As required under Brazilian securities regulations, the buyers also plan to launch a mandatory tender offer for the remaining outstanding shares. This move could ultimately result in the delisting of CBA from Brazil’s B3 stock exchange in São Paulo.

CBA is a major player in Brazil’s aluminium industry, operating a fully integrated production chain that includes bauxite mining, alumina refining, aluminium smelting, and the manufacture of a wide range of primary aluminium products. Over the past year, CBA shares have more than doubled in value, lifting the company’s market capitalization to around $1.27 billion, according to LSEG data.

The sale process reportedly drew interest from Emirates Global Aluminium, a UAE-based producer jointly owned by Mubadala and the Investment Corporation of Dubai. However, talks with EGA did not progress, clearing the way for Chinalco and Rio Tinto to finalize the deal, which Reuters had previously reported was nearing completion.