- Alba gains 300,000 tpa European aluminium capacity through $2.2 bn acquisition
- Bpifrance to take 6% stake as France backs strategic smelter deal
Aluminium Bahrain (Alba) has agreed to acquire Aluminium Dunkerque, the European Union’s largest aluminium smelter, in a deal valued at around $2.2 bn. The transaction was announced on 2 Jun’26 during the Choose France investment summit in Paris.
Aluminium Dunkerque has an annual primary aluminium production capacity of around 300,000 tpa and supplies aluminium to key European automotive, aerospace, packaging and industrial sectors. The acquisition is expected to strengthen Alba’s presence in the European aluminium market amid continued tightness in global aluminium supply conditions and elevated London Metal Exchange (LME) aluminium prices.
The deal comes at a time when global aluminium markets remain supported by tightening ex-China supply conditions, continued physical market tightness and ongoing geopolitical uncertainties surrounding Middle East shipping routes. Market participants noted that global producers are increasingly focusing on geographic diversification and securing downstream market access amid continued volatility across global trade and logistics networks.
As part of the transaction, France’s state-backed investment bank Bpifrance will acquire a 6% stake in the holding company for around €100 mn ($116.5 mn) and secure representation on the company’s board. Alba stated that the acquisition will be financed through a consortium of banking partners and remains subject to regulatory approvals and customary closing conditions.
Industry participants believe the acquisition could strengthen Alba’s long-term positioning in the global aluminium value chain while expanding its exposure to Europe’s growing low-carbon aluminium market, where buyers continue to prioritise stable and sustainable aluminium supply sources amid evolving carbon regulations and procurement standards.
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