Why Alcoa and Kaiser Aluminum Are Both Soaring Higher Today

Kaiser Aluminum (NASDAQ: KALU) after markets closed Monday agreed to buy Alcoa's (NYSE: AA) rolling mill business for $670 million. Alcoa has struggled in recent years, and in 2019 launched a program to sell between $500 million and $1 billion of assets deemed non-core in response to weak commodity prices. The company late Monday hit its goal when it announced the sale of its Warrick rolling mill business located in Evansville, Indiana, to Kaiser for $670 million, including $587 million in cash and the assumption of $83 million in employee liabilities.