- Alcoa (NYSE:AA) and Alumina Limited (OTCQX:AWCMF) have amended the terms of a joint venture to address "new realities" after some earlier concerns (and legal challenges) from Alumina on the fate of the partnership following a planned Alcoa split.
- The new arrangement means the two are terminating litigation in Delaware tied to the split, which Alcoa says is on track for the second half.
- The changes to the Alcoa World Alumina and Chemicals JV focus on governance and financial policies, and also simplify dividend and cash management. They also call for raising debt to fund growth projects that the partners agree upon.
- A change of control of either partner would give the other partner more flexibility to go it alone on an expansion or development project, and it would terminate exclusivity and non-compete restrictions.