A person familiar with the negotiations said on Thursday that The Aluminium Corporation of China (Chinalco) and Rio Tinto are close to announcing an agreement to take control of Brazilian aluminium producer Companhia Brasileira de Alumínio, commonly known as CBA.
Grupo Votorantim is offering its 69% holding in CBA for sale, the same source said. The price for the stake has not been disclosed, and the breakdown of ownership between Chinalco and Rio Tinto has not been divulged.
Representatives for Votorantim and CBA declined to provide comment. Chinalco and Rio Tinto did not immediately respond to requests for comment.
CBA manages an integrated aluminium business that includes bauxite mining and refining operations, as well as smelting and fabrication of a range of primary aluminium products. Over the last 12 months the company’s shares have more than doubled, lifting its market capitalization to $1.27 billion as of Thursday, based on LSEG data.
The sale process drew interest from Emirates Global Aluminium (EGA), a UAE-based aluminium producer jointly owned by Mubadala and the Investment Corporation of Dubai, but talks with EGA did not move forward, the source added.
Earlier this week there were reports indicating negotiations were progressing, with Chinalco and another unnamed party actively pursuing the purchase and a possible announcement expected within days.
The outcome will determine which international producers gain control over a vertically integrated aluminium business in Brazil that spans extraction through finished primary products. At this stage, key terms of any impending deal - including the purchase price and each buyer’s resulting ownership percentage - remain undisclosed.
Observers will be watching for formal confirmations from the parties involved and for regulatory or shareholder disclosures that would clarify deal mechanics and timing.