Aluminum supplier Saudi Arabian Mining Co., which just signed a deal with Alcoa Corp., is pursuing another transaction to swap two subsidiaries for shares in a Bahrain-based rival.

The Alba deal is valued between $963.25m and $1.06bn (BHD363m and 398m), and the proceeds will help SABIC grow in the chemicals industry.

Alba said the potential deal will reshape the aluminium market, positioning the merged entity as one of the largest aluminium producers worldwide.

SABIC, a Saudi-based global diversified chemicals company, has signed an agreement with Saudi Arabian Mining Company (Ma'aden) for the sale of its 20.62% shareholding in Aluminum Bahrain (Alba). The sales proceeds are expected to be within a range of BD363 million ($963.45 million) to BD398 million ($1,056.34 million), said a statement.

Saudi state-owned miner Ma'aden is exploring a merger of its aluminium business with Aluminium Bahrain (Alba), which would potentially form one of the largest producers in the global aluminium market.