Xstrata plc announces the disposal of Xstrata Aluminum, which comprises all of Xstrata’s aluminum assets, to Apollo Management LP for $1.15 billion. Xstrata Aluminum was created from the former Falconbridge Group’s aluminum assets, known as Noranda Aluminum, following Xstrata’s acquisition of Falconbridge Limited in 2006. Apollo Management is a leading private equity and capital markets investor with investments in a diverse range of sectors in the U.S. and internationally. The transaction is subject to regulatory approval and is expected to be completed in the second quarter of 2007.
Noranda Aluminum comprises a 100%-owned primary smelter in New Madrid, Tenn., and three modern rolling mills in Tennessee, North Carolina and Arkansas. Noranda also has a 50% interest in the Gramercy aluminum refinery in Louisiana and St. Ann bauxite mine in Jamaica, both of which are owned through a joint venture with Century Aluminum Inc.
Xstrata Sells Aluminum Assets to Apollo Management
April 13, 2007