Alcoa has agreed to acquire a portfolio of South32's aluminium, alumina and bauxite assets in a transaction valued at up to US$5.6 billion, in one of the most significant deals in the global aluminium sector in years. Wood Mackenzie analysis finds the transaction is strategically coherent for both parties, but the headline discount to fundamental value largely reflects conservative pricing assumptions and the inclusion of higher-cost downstream assets. The deal marks a decisive strategic shift for both companies. For Alcoa, it cements a dominant upstream position in bauxite and alumina. For South32, it accelerates a ... (full story)