Alcoa announces that it has reached a binding agreement to acquire the Australian group Alumina Limited, a transaction that will consolidate the American company's position as one of the world's largest producers of bauxite and alumina.

Under the agreed terms, Alumina shareholders will receive 0.02854 Alcoa shares for each Alumina share, a ratio that implies an equity value of approximately $2.2 billion for Alumina. They will thus own 31.25% of the combined group.

The Boards of Directors of Alcoa and Alumina Limited recommend that their shareholders vote in favor of the transaction, which 'is expected to result in long-term value creation for shareholders of both companies'.

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