Ma’aden buys Bahrain Aluminum stake from SABIC for $963 million
Ma’aden, a Saudi Arabian mining company, has bought a 20.6% share in Bahrain Aluminum Company (Alba) from SABIC Industrial Investment Company for $963.4 million (BHD 363.1 million), according to a stock market filing on Wednesday.
Acquisition Details
The company announced on September 17, 2024, that it would buy SABIC’s share in a Bahraini aluminum business, according to a report on the Saudi Exchange (Tadawul).
At that time, the deal was estimated to be between $963.4 million (BHD 363.1 million) and $1.1 billion (BHD 398.2 million).
The acquisition was completed after going through the required approval process. The deal involved buying and selling shares of Bahrain Aluminum Company that were previously owned by SABIC.
Ma’aden said this purchase is part of its plan to improve its business, focus on key areas, and invest in more profitable opportunities.
Share Prices
Ma’aden’s stock increased by 1.7% to $13.14 (SAR 49.3) per share, giving the company a total market value of $49.2 billion (SAR 184.6 billion) as of 12:52 pm AST on February 19, 2025.
On the other hand, SABIC’s stock dropped by 0.2% to $17.49 (SAR 65.6) as of 1:02 pm AST, valuing the company at $52.6 billion (SAR 197.1 billion).
Financial Performance
Ma’aden’s net profit for the third quarter fell by 5.1% from the previous year to $258.6 million (SAR 971.5 million) due to higher costs. However, this was partly balanced by a big increase in gross profit, which rose 158.7% to $638.8 million. Compared to the previous quarter, gross profit went up by 9.8%, helped by higher sales prices, increased sales volume, and lower depreciation costs.
Meanwhile, SABIC, the Saudi petrochemicals giant, had a small 1% drop in revenue for the first nine months of 2024, earning $28 billion (SAR 105.3 billion), mainly due to lower sales.
Despite this, SABIC made a net profit of $913.4 million (SAR 3.43 billion) during this period, a big improvement from the $276.9 million (SAR 1.04 billion) net loss it reported in the same period in 2023.
Published: 20th February 2025
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