Rusal closes first stage of deal to buy stake in India's Pioneer, acquiring 26% for $244 mln
MOSCOW. Aug 15 (Interfax) - Rusal has completed the first stage of a deal to buy a stake in Indian alumina refiner Pioneer Aluminium Industries Limited, acquiring a 26% interest for $243.75 million, the Russian aluminum giant reported in its financial statement.
The amount is "subject to further adjustments provided for in the share-purchase agreement," Rusal said. Under the agreement, Rusal is acquiring "the interest in the Plant's share capital in three stages up to 50%."
Pioneer Aluminium owns and operates a metallurgical grade alumina refinery located in the state of Andhra Pradesh with production capacity of 1.5 million tonnes.
"It is the intention of the Group to supply bauxite to and to receive alumina from the Plant pro rata to the Group's respective shareholding," Rusal said.
Under the agreement signed in March, Rusal intends to acquire up to 50% of Pioneer Aluminium, including the first 26% for $243.75 million, plus adjustments for the plant's working capital and debt. All subsequent stages of the deal will be paid pro rata.
Prior to the deal with Rusal, Pioneer Aluminium had two large shareholders, Penna Group with 68% and Rescom Group, which owned 26% through its investment division KCap Holdings.
Since Rusal lost access to the Nikolayev Alumina Refinery and alumina supplies from Australia in 2022, which together accounted for about 40% of its consumption of this raw material, the company has been forced to buy more than a third of the alumina it needs on world markets at exchange prices. Rusal's expenses on buying alumina rose 18% to $2.7 billion in the first half of 2025, the company reported.
In 2024, Rusal acquired a 30% stake in Chinese alumina producer Hebei Wenfeng New Materials (HWNM) for $316 million, giving it a proportionate share of the plant's production. This enables Rusal to claim 1.4 million tonnes of alumina per year, which is comparable to the amount it is forced to buy on the market. Rusal said the HWNM deal would secure it access to alumina supplies at competitive prices.
However, at the end of 2024 Rusal announced plans to optimize aluminum production capacity, cutting it by 250,000 tonnes or about 6.5% of annual output, in the initial stage. The main reason was the growth of alumina prices, which rose faster than aluminum prices, hitting the company's margin.
