South32 CEO Matthew Daley said on Wednesday he is open to mergers and acquisitions following the diversified miner’s agreement to sell the bulk of its aluminium portfolio to Alcoa for up to $5.6 billion. Speaking on an investor call, Daley emphasized that any potential deal must be value accretive, strategically aligned, and preserve the company’s financial strength, while competing against South32’s existing organic growth pipeline for capital allocation.
In-Depth:
MELBOURNE, July 1 (Reuters) – South32 CEO Matthew Daley stated on Wednesday he was open to mergers and acquisitions but any deal must add value to the company, after the diversified miner agreed to sell the bulk of its aluminium portfolio to Alcoa for up to $5.6 billion.
“We will definitely view at opportunities that we see are value accretive, that are strategically aligned and maintain our financial strength, but they’re going to have to compete for capital with the organic pipeline,” Daley stated on an investor call.
(Reporting by Melanie Burton in Melbourne; Editing by Sonali Paul)
