US aluminium giant Alcoa said Monday it had agreed to an equity swap that would boost its stake in Sweden's Elkem Aluminium and make it the ssector's largest manufacturer. Alcoa said it struck a deal with Norweigan Orkla ASA to exchange assets to get 100 percent of the Swedish firm. Alcoa will receive Orkla's 50 percent stake in Elkem Aluminium while Orkla will receive Alcoa's 45 percent stake in the processing operation of US-based maker SAPA.
The transaction is expected to be completed in the first quarter of 2009. "The addition of these assets increases Alcoa's global smelting capacity to more than 4.7 million metric tons, making Alcoa the world's largest primary aluminium producer," Alcoa said.
The company would overtake the current world leader, Rusal of Russia. "We will be assuming control over businesses where we are the recognised global leader This move makes good strategic and financial sense for both Alcoa and Orkla," Alcoa president and chief operating officer Klaus Kleinfeld said.