Alfa, S. A. B. de C. V. (BMV:ALFA A) agreed to spin-off 75% stake in Controladora Nemak on July 31, 2020. Under the terms of the transaction, Alfa's shareholders would receive one share of Controladora Nemak for each of their Alfa shares of 4,909 million, in addition to retaining their share ownership in Alfa's equity. Alfa expects to execute the spin-off as splitting entity, without Nemak, S. A. B. de C. V. (BMV : NEMAK A) being dissolved. In addition, a new entity would be constituted as the spun-off company (“Controladora Nemak”), which would be listed on the Mexican Stock Exchange. Nemak, S. A. B. de C. V. would stay listed separately. Alfa would transfer its entire share ownership in Nemak to Controladora Nemak, as well as certain assets and capital. Nemak's shareholders in the future would be able to decide whether to merge with Controladora Nemak or not.

The transaction is subject to customary approvals and approval of the shareholders of Alfa at the extraordinary shareholders' meeting that will take place on August 17, 2020. The transaction has been approved by Alfa's Board of Directors. The transaction was approved in an Extraordinary Shareholders' Meeting of Alfa, S. A. B. de C. V., on August 17, 2020. As of August 17, 2020, the transaction is expected to complete within 60 days.

Alfa, S.A.B. de C.V. (BMV:ALFA A) completed the spin-off of 75% stake in Controladora Nemak on December 14, 2020.