On July 1, Alcoa declined 6.44% in regular trading, trading at $48.4/share, with turnover of $42.17 million. The stock came under heavy selling pressure after the company announced a deal to acquire South32's bauxite, alumina, and aluminum smelting assets for up to $5.6 billion.

The transaction comprises $3.1 billion in cash, approximately $1 billion in Alcoa stock, assumption of $750 million in net debt and lease liabilities, plus up to $750 million in contingent consideration linked to aluminum prices through 2030. Alcoa has secured fully committed financing, with the initial tranche structured as a $3.1 billion bridge loan. The acquired assets include operations in Australia, South Africa, and Brazil, and are expected to boost Alcoa's alumina output by over 50% and aluminum smelting capacity by more than one-third.

While management stated the deal would be immediately accretive to EPS and free cash flow, investors expressed concern over the elevated transaction price and near-term financial burden. The stock had already fallen nearly 5% in its Sydney-listed shares prior to U.S. trading. UBS recently lowered its price target on Alcoa to $68 from $80 while maintaining a Buy rating.

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