Alcoa will sell its 25.1% stake in the Ma’aden joint venture for $1.1 billion.

(Reuters) – US aluminum producer Alcoa (NYSE: ) said on Sunday it will sell a 25.1 percent stake in its Ma’aden joint venture to Saudi Arabian mining company Ma’aden for $1.1 billion.

The deal includes about 86 million Ma’aden shares and $150 million in cash, Alcoa said in a statement, adding that it expects to close the transaction in the first half of 2025.

“The transaction simplifies our portfolio, increases visibility into the value of our investment in Saudi Arabia and provides greater financial flexibility for Alcoa,” said Alcoa CEO William Oplinger.

Alcoa said it would hold its Ma’aden stake for at least three years. Upon completion of the transaction, Alcoa would own approximately 2% of Ma’aden’s current outstanding shares.

The joint venture was created in 2009 as a fully integrated mining complex in Saudi Arabia, Alcoa said, adding that Ma’aden owns the remaining 74.9 percent of the project.

“We look forward to future opportunities for collaboration as we continue to transform the mining sector into the third pillar of the Saudi economy,” said Bob Wilt, CEO of Ma’aden.

In July, Alcoa posted quarterly revenue of $2.9 billion, beating expectations of $2.8 billion.