Alcoa Completes $2.85 Billion Firth Rixson Acquisition

by on

Alcoa has announced the completion of its acquisition of Firth Rixson, a leading jet engine components manufacturer. The company had announced the Firth Rixson aqcusition in June. The total consideration for the acquisition is $2.85 billion, consisting of $2.35 billion in cash and $500 million in stock. In addition, there is a potential $150 million earn-out, the payment of which depends on Firth Rixson’s performance through 2020.

FREE Download: The Monthly MMI® Report – covering the Aluminum market.

The acquisition is a part of Alcoa’s ongoing strategic shift of its product portfolio towards value-added products, which are more profitable as compared to its upstream businesses.

On Monday, November 24, the day’s biggest mover was the price of Chinese aluminum scrap, which saw a 3.1% decline to CNY 12,550 ($2,049) per metric ton. Closing out a three-day flat streak, the cash price of Chinese aluminum moved up 0.4% to CNY 13,710 ($2,239) per metric ton. The price of Chinese aluminum bar remained essentially flat at CNY 14,200 ($2,319) per metric ton. At CNY 14,000 ($2,286) per metric ton, the price of Chinese aluminum billet was essentially unchanged.

* Get the complete prices every day on the MetalMiner IndX℠

On the LME, the primary aluminum cash price rose 3.0% to $2,077 per metric ton. On the LME, the aluminum 3-month price increased 2.6% to $2,063 per metric ton. After a 0.6% increase, the Indian aluminum cash price finished the day at INR 127.00 ($2.06) per kilogram.

{Comments Off on Alcoa Completes $2.85 Billion Firth Rixson Acquisition Comments Off on Alcoa Completes $2.85 Billion Firth Rixson Acquisition}