Alcoa Completes Corporate Split
02 November 2016 by Staff
Alcoa Incorporated completed its long-awaited split yesterday, as Alcoa Corporation began as a stand-alone entity specializing in aluminium’s upstream sector, and Alcoa Inc. began operating under the name Arconic Inc., a firm that focuses upon value-added aluminium, as well as nickel and titanium products.
The split was accomplished yesterday via a pro-rata distribution of 80.1 percent of Alcoa Corporation’s stock by Arconic. Alcoa Inc.’s shareholders received a single Alcoa Corporation share for every three Alcoa Inc. shares the shareholder held as of October 20. The Alcoa Inc. shares became Arconic shares yesterday as well.
“We are launching Alcoa Corporation as a world leader in the aluminum industry with distinct competitive advantages across the value chain,” said Alcoa’s Chief Executive Officer Roy Harvey. “Our bauxite and alumina portfolios enjoy strong first quartile cost positions and our aluminum portfolio has a highly competitive second quartile position. We’ve made a commercial success of our cast products business, our can sheet business is a leader in North America, and our substantial energy assets are also driving value for maximum profitability. We achieved all of this during difficult market conditions, remaining resilient thanks to the hard work and dedication of our talented 16,000 employees. As we look towards the future, we intend to continue operating with excellence and innovating within the industry we pioneered, always driven by our values and our strong will to succeed.”
“Today we launch Arconic as a strong independent company,” said Klaus Kleinfeld, Arconic Chairman and CEO. “Our multi-year transformation while part of Alcoa Inc. substantially improved our competitiveness and profitability. Today, we are very well positioned as a leader in attractive markets. Our culture combines driving innovation with a relentless focus on operational excellence and cost control; this positions Arconic to create significant value for our customers and profitable growth for our shareholders.”
In connection with the split, the Alcoa Foundation announced a US$300,000 one-year commitment to World Wildlife Fund (WWF). The Foundation says that this gift is in token of its refreshed focus on sustainable development.