Alcoa Bids $2.2 Billion for Australian Partner to Control Assets

US aluminum producer Alcoa Corp. made a $2.2 billion offer to acquire its Australian joint-venture partner Alumina Ltd. to consolidate ownership of key upstream assets with long-term demand for the metal forecast to rise.

The offer marks a premium of about 13% to Alumina’s closing share price on Friday. The Australian company’s board plans to support the deal, under which Alumina shareholders will receive Alcoa stock, if the sides get to a definitive agreement following further discussions, it said in an exchange filing on Monday.

Alumina’s shares rose as much as 9.3% in Sydney before closing 6.9% higher at A$1.09. ...