Rio Tinto Plc (RIO) is making a major play in Brazil's aluminum sector, teaming up with China's Aluminum Corporation of China Limited (Chalco) to buy Votorantim's controlling stake in Companhia Brasileira de Alumínio (CBA). The Thursday announcement marks a strategic bet on low-carbon aluminum production at a time when the metal's environmental credentials matter more than ever.
The deal values Votorantim's 68.596% stake at around $902.6 million total, with Rio Tinto's portion coming to approximately $297.8 million. Like most transactions of this size, the final numbers are subject to closing adjustments, regulatory approvals, and the usual conditions that come with cross-border mining deals.
How the Partnership Works
The two mining giants are structuring the acquisition through a joint venture where Chalco holds the majority with 67% ownership, while Rio Tinto takes the remaining 33%. It's an all-cash transaction that prices CBA shares at 10.50 South African Rand each, representing a healthy 21.2% premium over the 20-day volume-weighted average price of 8.67 South African Rand before January 28, 2026.
Once the deal closes, the joint venture will be required to make a mandatory tender offer for the remaining CBA shares still trading publicly, as Brazilian regulations require when someone acquires control of a listed company. The partnership brings together Rio Tinto's global aluminum expertise with Chalco's operational strengths to drive CBA's next growth phase.
What They're Actually Buying
CBA isn't just another aluminum producer. The company operates a vertically integrated, low-carbon aluminum business in Brazil that's backed by 1.6 GW of renewable energy assets. That renewable power advantage is significant because it means CBA produces aluminum using 100% clean energy, which is increasingly valuable as industries face pressure to decarbonize their supply chains.
The company's operations span the entire aluminum value chain: three bauxite mines feed into the São Paulo Alumínio Complex, which houses alumina refining, aluminum smelting, recycling facilities, and downstream processing operations. It's the kind of integrated setup that major miners find attractive because it provides control over the entire production process.
Jérôme Pécresse, Chief Executive of Rio Tinto Aluminium & Lithium, explained the strategic rationale: "This acquisition, jointly with Chalco, of Votorantim's controlling position in CBA's fully integrated aluminium supply chain in Brazil is aligned with our strategy to deliver value for shareholders by extending our low-carbon, renewable-powered aluminium footprint in rapidly growing markets. It also provides the opportunity to grow our bauxite and alumina supply chain in the Atlantic region."
Rio's Broader Operations
The Brazilian aluminum deal comes as Rio Tinto continues posting strong numbers elsewhere. Earlier this month, the company disclosed fourth-quarter Pilbara iron ore production jumped 4% year-over-year to 89.7 Mt. For fiscal 2026, Rio is projecting Pilbara iron ore sales between 323-338 Mt.
Investors will get a fuller picture when Rio Tinto releases its 2025 full-year results on Thursday, February 19, 2026.
RIO Price Action: Rio Tinto shares were down 3.98% at $91.34 during premarket trading on Friday.
