By Brazil Stock Guide – The planned sale of Companhia Brasileira de Alumínio’s (CBA) Rondon bauxite project could expand into a potential deal for control of the entire company, according to people familiar with the matter cited by Valor Econômico. The transaction, initially focused on the asset, is being structured by Moelis & Co. but could draw strategic investors interested in a broader stake, depending on pricing and market conditions.
The Rondon project, located in Pará state, is the world’s largest bauxite development, requiring an estimated $2.5 billion investment. Interested parties include China’s Chinalco, Alcoa, and Rio Tinto. One source told Valor Econômico that Rio Tinto is even weighing a full takeover of CBA, which went public in 2021 with a valuation of 6.7 billion reais and now trades at around 2 billion reais — its lowest level since the IPO.
“This won’t be a traditional M&A. The idea is for a strategic investor to become a partner and inject capital to develop the project,” one person close to the talks said to Valor.
The move comes as CBA faces squeezed margins from Chinese competition and high leverage. A potential deal could ease financial pressures while enabling its controlling shareholder, Votorantim, to diversify abroad. Still, sources noted Votorantim’s long-term investment profile could limit appetite for a full exit.
The outcome could reshape Brazil’s aluminum market. The entry of global players would intensify domestic competition and integrate the country further into international supply chains. For CBA, ceding control might bring near-term relief but could also weaken its strategic position. Talks are expected to conclude by the end of 2025.
CBA told Valor Econômico it remains attentive to partnership opportunities for the Rondon project. Votorantim and Alcoa declined to comment. Rio Tinto, Chinalco and Moelis did not respond to requests for comment.
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