Bahrain’s Alba buys Europe’s largest aluminium smelter for $2.2 billion
The agreement was announced on Tuesday during the Choose France Summit
Aluminium Bahrain, widely known as Alba, has agreed to acquire Aluminium Dunkerque, the European Union’s largest aluminium smelter, in a deal valued at about $2.2 billion.
The agreement was announced on Tuesday during the Choose France Summit, with French state-backed investment bank Bpifrance also confirming plans to take a 6 percent stake in the business for $116.5 million.
Under the memorandum of understanding, Bpifrance will receive a seat on the board of Aluminium Dunkerque’s holding company .
Alba said the acquisition is expected to close later this year and will be fully financed through a consortium of banking partners.
Aluminium Dunkerque produces around 300,000 metric tonnes of aluminium annually, making it one of Europe’s most significant smelting operations.
Alba already operates one of the world’s largest aluminium smelters in Bahrain with a production capacity of 1.6 million tonnes, although the company has reduced output since the start of the Iran war.
French Trade Minister Nicolas Forissier described the takeover as “good news” for investment, employment, competitiveness and decarbonisation efforts, according to his office.
Citi analysts said the acquisition would strengthen Alba’s geographical diversification and earnings potential.
