Alcoa Corp (NYSE:AA) announced a proposal on Sunday to acquire Australian aluminum producer Alumina Ltd (ASX:AWC) in an all-stock deal valued at $2.2 billion, aiming to establish one of the globe's leading bauxite and alumina production entities.

Based in Pittsburgh, Alcoa's offer would allow Alumina's shareholders to exchange each of their shares for 0.02854 shares of Alcoa, which translates to a value of approximately $0.76 per share based on Alcoa's last closing price.

This offer appraises Alumina at around $2.2 billion, reflecting nearly a 13% premium on the company's closing price on Friday.