Alcoa Corp., a leading aluminum producer in the US, has reached an exclusivity and transaction process deed with Alumina Limited for the acquisition of 0.02854 Alcoa shares for each Alumina Limited share, valued at around US$2.2 billion.

The transaction would strengthen Alcoa's position as one of the world's largest producers of bauxite and alumina, increase ownership of core tier-1 assets, as well as create significant and long-term value for the shareholders at both companies.  

Also, Allan Gray Australia, Alumina Limited’s largest holder, has inked an agreement with Alcoa, allowing Alcoa to acquire up to 19.9% of Alumina Limited’s issued share capital.