Aluminium Bahrain has agreed to acquire the EU’s biggest primary aluminium smelter from a private equity firm and is considering bringing in France’s state-backed investment bank as a shareholder, expanding the Gulf producer’s footprint in Europe.
The Bahraini firm, known as Alba and backed by sovereign wealth fund Mumtalakat Holding, said it signed an exclusive agreement with American Industrial Partners to purchase 100% of Aluminium Dunkerque. Financial terms were not disclosed.
The consideration will be paid in cash and fully underwritten by a syndicate of relationship banks, Alba said, underscoring lender appetite for strategic industrial assets tied to Europe’s energy transition. Located in Loon-Plage in the Dunkerque region of northern France, Aluminium Dunkerque produces about 300,000 metric tons of aluminium annually.
“We will ensure operational continuity, support employees and expand low-carbon production capabilities to advance Aluminium Dunkerque’s next phase of development in full alignment with France’s industrial and energy priorities,” said Alba CEO Ali Al Baqali.
As part of the transaction, Alba said it is open to offering an equity stake to Bpifrance to strengthen a long-term strategic partnership and support the sustainable development of the French smelter. Talks with Bpifrance have begun and will continue in the coming days, the company said.
Advisers on the deal included Rothschild & Co. as financial adviser to Alba, with White & Case LLP and BDGS Associes providing legal counsel. American Industrial Partners was advised by Goldman Sachs, Societe Generale and Messier & Associes, with Jones Day and Baker Botts acting as legal advisers.
About Alba: The firm is dually listed on the Bahrain Bourse and the London Stock Exchange. Its shareholders include Mumtalakat with 69.38%, Saudi Arabian Mining Company with 20.62%, and the general public holding the remainder.
📌 Why it matters: The deal highlights growing Gulf investment in European heavy industry at a time when energy-intensive producers face mounting cost pressures and decarbonization demands. By pairing Bahraini capital with potential French state backing, the transaction could offer a template for cross-border industrial partnerships that blend sovereign wealth, private equity exits and national strategic interests.
📌 Bottom line: Alba’s move positions it as a larger global aluminium player while deepening economic ties between the Gulf and Europe. If completed, the acquisition would expand its production base into the EU and embed it within France’s industrial strategy — with state-backed capital potentially reinforcing the long-term outlook.
