Chalco, Rio Tinto to Buy Brazil’s CBA in $886 Million Push for Greener Aluminum
By Luo Guoping
China’s Aluminum Corporation of China Ltd. (Chalco) and Rio Tinto Group will jointly acquire a controlling stake in Companhia Brasileira de Alumínio (CBA) from Votorantim Group for 4.69 billion Brazilian reais ($886 million), securing low-carbon production amid a surge in metal prices.
The acquisition will be made through a joint venture, with Chalco holding 67% and Rio Tinto 33%. The deal deepens the strategic ties between China’s state-owned Chalco and the global mining giant as both expand in Latin America.
Under the all-cash agreement, the joint venture will pay 10.5 reais per share for a 68.6% stake in CBA, a 21.2% premium over the target’s stock price over the past 20 trading days. Following the deal, CBA will become a subsidiary of Chalco.
The transaction coincides with a sharp rally in aluminum prices. Three-month aluminum futures on the London Metal Exchange have risen by more than 45%, from $2,300 per ton in April 2025 to a record $3,356 per ton on January 29, 2026. Prices were at $3,181.5 per ton as of Friday.
Founded in 1941, CBA is Brazil’s only fully integrated aluminum producer, managing operations from bauxite mining to processing. The company, which listed on the Brazilian stock exchange in 2021, powers its operations entirely with renewable energy, including a 1.6-gigawatt self-generated capacity from 21 hydropower plants and four wind farms.
CBA operates three bauxite mines with an annual output of 2 million tons. In 2024, it produced 720,000 tons of alumina and 364,500 tons of liquid aluminum, making up more than one-third of Brazil’s primary aluminum market. The São Paulo-based complex includes an alumina refinery with 800,000 tons of capacity and a smelter producing 400,000 tons of electrolytic aluminum annually.
For the first three quarters of 2025, CBA reported revenue of 6.6 billion reais and a net profit of 393 million reais, a turnaround from 2024, when it posted a net loss of 73 million reais on 8.17 billion reais in revenue. As of September 2025, total assets stood at 13.88 billion reais.
Following the transaction’s completion, the joint venture will make a mandatory tender offer for the remaining CBA shares. The partners are considering taking the company private, though this could be revisited. The deal has been approved by antitrust regulators, Brazil’s electricity authorities, and China’s outbound investment regulators, but still requires additional clearances.
Chalco said the acquisition supports its strategy to optimize its global operations and enhance environmental, social, and governance (ESG) standards by establishing a new base in Brazil. Jérôme Pécresse, Chief Executive of Rio Tinto Aluminium, added that the deal will expand the company’s low-carbon aluminum production and strengthen its Atlantic supply chain.
Brazil has become a key hub for Chinese investment, offering a large market and abundant natural resources. The deal also highlights the existing ties between the two companies. Chalco’s parent, Aluminum Corporation of China, is Rio Tinto’s largest single shareholder, and they are partners in developing the massive Simandou iron ore project in Guinea.
Contact editor Han Wei (weihan@caixin.com)
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Image: Pavel Losevsky – stock.adobe.com