Aluminium Bahrain has agreed to buy Aluminium Dunkerque for about $2.2 billion, the company said on Tuesday. The transaction will transfer full ownership of the French smelter to Alba, giving it control of the largest aluminium production facility in the European Union.
The Dunkerque plant, located near the port city of Dunkirk, produces approximately 300,000 metric tons of aluminium annually. Under the terms disclosed with the announcement, Bpifrance, the French state-backed investment bank, will acquire a 6% interest in the operation for €100 million, or about $116.5 million, and will take a seat on the holding company’s board.
Alba stated that the acquisition will be fully financed by a consortium of its banking partners. The agreement and the memorandum of understanding with Bpifrance were announced in Paris on the sidelines of the Choose France Summit, according to the company.
The company said it entered exclusive negotiations earlier this year to purchase the smelter from American Industrial Partners, the U.S. investment fund that has owned the asset. The announcement formalizes the move from exclusive talks to an agreed transaction.
The deal combines a major industrial asset with a modest minority investment by a public financial institution. Bpifrance’s €100 million contribution is explicitly tied to a 6% stake and governance representation via a board seat on the holding company that oversees the Dunkerque operation.
Alba’s statement that the purchase will be financed by a banking consortium indicates that the company expects to fund the transaction without issuing additional equity; details on the specific institutions involved or the financing timetable were not provided in the announcement.
The announcement does not detail closing conditions, regulatory timelines, or other transaction mechanics beyond the ownership transfer price and Bpifrance’s minority stake. The signing took place in Paris alongside the memorandum of understanding with Bpifrance at the Choose France Summit, and follows the exclusive talks that began earlier in the year.