By Clarence Leong

Shares of Aluminum Corp. of China Ltd. rose Monday after the corporate agreed to extend its stake in Yunnan Aluminium Co., which analysts mentioned will make the corporate the world’s largest aluminum producer.

Shanghai-listed shares of the corporate, also referred to as Chalco, superior as a lot as 5.5% in early commerce. The Hong Kong-listed inventory rose as a lot as 8.2% earlier than paring positive factors to commerce at HK$2.83, up 1.4%. The H-shares have misplaced 34% up to now this 12 months. Hong Kong’s benchmark Grasp Seng Index was final 0.7% decrease at 20461.31.

Yunnan Aluminium’s inventory was not too long ago 2.7% greater at CNY9.84.

Chalco pays 6.66 billion yuan (US$986.5 million) to buy a 19% stake in Yunnan Aluminium, taking its whole fairness curiosity within the Shenzhen-listed firm to 29.10%, it mentioned in a Sunday submitting.

After the deal is accomplished, Yunnan Aluminium will turn into a subsidiary of Chalco, and its monetary outcomes might be consolidated into Chalco’s earnings, based on the submitting.

Analysts at Citigroup mentioned the acquisition will make Chalco the world’s largest aluminum producer with a smelting capability of about 7.5 million metric tons a 12 months. Chalco’s value of manufacturing the bottom steel may additionally lower because of decrease prices in Yunnan, a province in southwestern China, they added.

Write to Clarence Leong at clarence.leong@wsj.com

(END) Dow Jones Newswires

July 24, 2022 23:11 ET (03:11 GMT)

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