Saudi Arabian Mining Co. (Maaden) has ended negotiations aimed at creating one of the world’s largest aluminum producers through a proposed share swap with its Bahraini counterpart, Aluminium Bahrain BSC (Alba). The talks, initially announced in September, involved Maaden planning to sell its entire stake in two subsidiaries—Maaden Aluminium Co. and Maaden Bauxite and Alumina Co.—to Alba. In return, Alba would have issued new shares to Maaden.
The decision to cancel the talks led to a significant drop in Alba’s stock, which plummeted by as much as 8.6% in Bahrain trading. Meanwhile, Maaden’s shares decreased by 0.7%. Both companies refrained from providing details on the reasons behind the termination of the discussions, which had been extended for an additional four months as of last month.
Alongside these negotiations, Maaden had also finalized a separate agreement to purchase shares in Alba from a unit of Saudi Basic Industries Corp., a major petrochemical company, in a deal valued at approximately $1 billion.
Maaden and Alba have increasingly become key players in the global aluminum market, particularly in the production of value-added products, an area traditionally dominated by a limited number of global suppliers.
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