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No more bad blood between Alcoa and Alumina

Staff Writer |
Alcoa and Alumina have settled a dispute and agreed to reshape their joint venture, removing an obstacle to Alcoa's plan to split into two companies.

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The two companies agreed to end a court fight that had threatened to delay Alcoa's plan to spin off its plane and car parts business, which is now set to go ahead by the end of this year.

"Alcoa looks forward to completing our separation, launching two strong companies later this year, and to working closely with Alumina to realize the full potential of the AWAC partnership," Alcoa's president of global primary products and future Alcoa Corp boss Roy Harvey said in a statement.

Alumina raised concerns last May that the spin-off plan would leave their Alumina and World Chemicals (AWAC) joint venture weakened. Alcoa fought back by going to court to seek a declaration that Alumina had no right to block the demerger.

This agreement gives the partners more flexibility to seek alliances outside the joint venture and gives Alumina, 40 percent owner of AWAC, more of a say than before in decisions on strategy, investments and operations.

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