Alba to buy French aluminium smelter in $2.2 billion deal

PARIS, June 2 (Reuters) - Aluminium Bahrain (Alba) has agreed to acquire Aluminium Dunkerque, the European Union's largest aluminium smelter, in a deal valued at about $2.2 billion, the company said on Tuesday.

• French state-backed investment bank Bpifrance is set to take a 6% stake for €100 million ($116.5 million), under a memorandum of understanding signed on the sidelines of the Choose France Summit.

• Bpifrance will have a seat on the board of Aluminium Dunkerque's holding company.

• Alba said the acquisition, expected to close this year, would be fully financed by a consortium of its banking partners.

• Aluminium Dunkerque produces about 300,000 metric tons of aluminium a year.

• Alba's existing plant in Bahrain has a capacity of 1.6 million tons, though the company has reduced output since the start of the Iran war.

• French Trade Minister Nicolas Forissier called the acquisition "good news" in supporting investment, jobs, competitiveness and decarbonisation, according to his office.

• The CGT union welcomed Alba's plans and Bpifrance's investment, Johan Vlietinck, a CGT union official at Aluminium Dunkerque, said, adding: "There are no longer any European firms that would be able to ensure Aluminium Dunkerque's development."

• Citi analysts said in a note that the deal should bring Alba geographical diversification and higher core earnings, adding that the group had a strong balance sheet.

• Alba entered exclusive talks earlier this year to acquire the smelter from U.S. investment fund American Industrial Partners.                                      ($1 = 0.8587 euro)

(Reporting by Hugo Lhomedet in Gdansk and Gus Trompiz in Paris; Additional reporting by Pratima Desai in London; Editing by Thomas Derpinghaus and Matthew Lewis)