In Dunkirk, the sale process of Europe’s largest aluminum smelter is entering its final stage, with the list of potential buyers becoming clearer and the French government’s interest intensifying. According to reports, six foreign groups – with no French presence – have submitted preliminary offers to acquire Aluminium Dunkerque, formerly a unit of Pechiney.

According to Les Echos, the interested parties include Metlen, Emirates Global Aluminium (EGA), Bahrain’s Alba, a Japanese group – Sumitomo – and two other international players. One of them, however, has already sparked strong union opposition: Rio Tinto, the former owner of the plant from 2007–2018, is accused of having made significant staff cuts before selling the smelter to Indian businessman Sanjiv Gupta, who later faced serious financial problems.

The 750 employees of Aluminium Dunkerque are already openly calling for the French government’s intervention. This request, gaining greater political weight ahead of municipal elections, seems to have been heard. According to converging reports, Bpifrance has been asked by Aluminium Dunkerque and its main shareholder, the U.S. investment fund AIP, to conduct due diligence checks, aiming to potentially support one or more of the prospective investors.

Until recently, France’s Ministry of Finance (Bercy) simply stated that it was “keeping watch,” referring to the mechanism for controlling foreign direct investments. Now, however, the state is raising its level of involvement. “The government is monitoring the file very closely,” said the Ministry of Finance, adding that it is in continuous contact with management and the unions. It also noted that if the acquisition by a foreign group goes ahead, the state will be “extremely strict” regarding the maintenance of strategic activity in Europe, job security, and the continuation of decarbonization projects.

Bpifrance’s participation as a minority shareholder is considered “one option,” with Bercy emphasizing that the future buyer must provide strong guarantees for continued investments and supply to the French and European industry.

Metlen emerges as a key candidate

Special attention is on the Greek group Metlen, the only European player officially still in the running. The report notes that Metlen has historical ties with Pechiney, having acquired Aluminium of Greece, the Greek subsidiary of the former French industrial leader, in 2005. Today, with around 5,000 employees, Metlen is the only European group fully controlling the entire production chain: from bauxite mining and alumina production to aluminum smelting and energy, through its subsidiary Protergia.

In a period of intense discussion on European industrial sovereignty, Metlen is a supplier to major French and German defense groups and has secured €400 million in financing from the European Investment Bank to create the first European gallium production line, a critical metal for radar and semiconductors. Acquiring Aluminium Dunkerque would allow it to increase aluminum production by 2.5 times and approach groups like Norsk Hydro.

The group, recently also listed on the London Stock Exchange in addition to Athens, has strong liquidity and is actively exploring acquisitions. “This is the asset we want most,” a source close to management said. Binding offers are expected by the end of February, while AIP is keeping open the possibility of listing Aluminium Dunkerque on the stock exchange if offers are not deemed satisfactory.

The French state had actively supported AIP back in 2021, when the U.S. fund took control of Aluminium Dunkerque by converting debt into equity, during the conflict with Sanjiv Gupta. Since then, the environment has changed radically: Aluminium Dunkerque, France’s largest industrial electricity consumer, has secured a ten-year supply contract with EDF, significantly boosting investment interest.

Market sources indicate that AIP values the smelter at over €1 billion. Morgan Stanley analysis places the value between €1.2 and €1.8 billion, based on a 4–6x EBITDA multiple of around €300 million. Aluminium Dunkerque’s turnover for 2024 amounted to €800 million.