FX.co ★ Alcoa to split into two companies

Alcoa, the largest aluminum producer in the US, announced its plan to split into two separate businesses.
According to the data revealed, the transaction will create an as-yet-unnamed company, code-named Upstream Company, which is expected to concentrate on mining and aluminum smelting. The name Alcoa will be retained by the upstream business, which mines bauxite, refines alumina and smelts aluminum, comprising the majority of production assets.
The second company, still unnamed but being referred to as the value-add company, will focus on innovative high-performance products. It will consist of several segments, including those that make rolled aluminum value-added products for transport and construction industries.
Klaus Kleinfeld, Alcoa's chief executive officer, will become the chairman of the new entity.
The split-up is expected to be completed by the end of 2016. Alcoa’s officials look forward for an investment grade rating for Value-Add Company as well as high non-investment grade rating for the new Upstream Company.