Nevada News Reporter

Alcoa to split into 2 separate public companies

Alcoa to split into 2 separate public companies

Alcoa will split into two independent, publicly traded businesses, saying that each portfolio is strong and distinct enough to go down its own strategic path. One company, which will take the Alcoa name, will have five business units including bauxite and aluminum, while the second company’s portfolio will be comprised of engineered products, global rolled products and transportation and construction solutions.

The split is expected to be finalized during the second half of next year. The name of the second company will be determined before the closing of the transaction. “In the last few years, we have successfully transformed Alcoa to create two strong value engines that are now ready to pursue their own distinctive strategic directions,” Chairman and CEO Klaus Kleinfeld said in a statement.

The new Alcoa will have 64 facilities across the globe and a staff of roughly 17,000. During the year-long period ending June 30, those divisions saw revenue of $13.2 billion. The second company, will span 157 sites and have roughly 43,000 employees. It saw revenue of $14.5 billion for the same 12 month period. In the past few weeks, Alcoa expanded a partnership with Ford Motor (F) through the use of a more durable type of aluminum for auto body parts. aShares were up 2.87% to $9.33 a share in morning trading.