Aluminum Bahrain (Alba) and US aluminum maker Alcoa said on Tuesday they had settled the Bahraini firm's racketeering and fraud suit against Alcoa in return for $85m in cash plus long-term raw material supply contracts.
Alba put the value of the contracts at $362m. Alcoa declined to give a value.
Alba had accused Alcoa of conspiring with a businessman to orchestrate bribes in Bahrain and to overcharge it for alumina, the crucial material used to make aluminum.
The Bahraini firm filed a lawsuit in US federal court in Pennsylvania - Alcoa is based in Pittsburgh - in 2008 and sought damages in excess of $1bn and punitive damages.
"We are very happy with this settlement, this is great news for Alba and Bahrain," Alba chairman Mahmood Hashim al-Kooheji, who is also chief executive of Bahrain's sovereign wealth fund Mumtalakat, said in an interview from Manama.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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