Alcoa to Split Into Two Companies
28 September 2015 - 9:20PM
Dow Jones News
Aluminum maker Alcoa Inc. said Monday that it will split into
two publicly traded companies, joining the recent wave of companies
looking to spur growth by breaking up.
Shares of Alcoa gained 4.2% in premarket trading.
Alcoa said its upstream company will include its bauxite,
alumina, aluminum, casting and energy business.
The other company will include its global rolled products,
engineered products and solutions, and transportation and
construction solutions businesses.
The deal is expected to close in the second half of next
year.
Alcoa shareholders will own all shares outstanding of both
companies.
Alcoa has struggled as the price for raw aluminum remains under
pressure amid China flooding the global markets with steel,
aluminum and other industrial metals.
Companies from industrial conglomerate Danaher Corp. to
Hewlett-Packard Co. have announced plans to break up their
businesses recently. The trend has been fueled by the idea that
companies with a narrower focus perform better. The moves in many
cases have been well received by shareholders - and sometimes
actively sought by them.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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(END) Dow Jones Newswires
September 28, 2015 07:05 ET (11:05 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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