Aluminium Bahrain (Alba) has signed an exclusive agreement to acquire Aluminium Dunkerque, the largest primary aluminium smelter in the European Union (EU), from American Industrial Partners (AIP).
The deal is said to be the Middle Eastern country’s biggest overseas takeover amid missile strikes from Iran, reported Bloomberg.
The transaction values Aluminium Dunkerque at over €1bn ($1.17bn), according to individuals familiar with the deal.
Located in Loon-Plage near Dunkerque, France, Aluminium Dunkerque produces approximately 300,000 tonnes (t) of aluminium annually and supplies industries including automotive, aerospace, defence, construction and packaging across France and Europe.
Alba intends to integrate Aluminium Dunkerque into its operations, creating a geographically diversified group with an expanded customer base in Europe and the Gulf Cooperation Council region.
The company plans to maintain existing operations at the French site while preserving employment levels and industrial capabilities.
It also commits to supporting France's and Europe's goals for energy transition by reinforcing low-carbon aluminium production at the facility.
Under previous ownership by AIP, Aluminium Dunkerque improved its operational reliability, energy efficiency and financial performance.
The smelter secured long-term electricity supply agreements and invested in productivity measures.
Alba chairman Khalid Al Rumaihi said: “By combining Alba’s and Aluminium Dunkerque’s established strengths, we intend to create a new industrial powerhouse for cross-regional collaboration rooted in shared values and a commitment to innovation and responsibility.”
The company’s acquisition is expected to provide further stability and investment for the facility.
The purchase price will be paid in cash, with funding fully underwritten by a syndicate of relationship banks.
Completion of the transaction depends on finalisation of definitive agreements and regulatory approvals from French authorities and the EU. Closing is anticipated in 2026.
Consultation with Aluminium Dunkerque’s works council and unions will take place as required by French law.
As part of the process, Alba has initiated discussions with Bpifrance, a French public sector investment bank, about a possible shareholding position to develop a strategic partnership for the ongoing development of Aluminium Dunkerque.
Financial advisors for AIP on this deal included Goldman Sachs, Société Générale and Messier & Associés. Legal advisors were Jones Day and Baker Botts.
Rothschild & Co acted as financial advisor to Alba, and White & Case and BDGS Associés provided legal counsel.
