Updates with further details on the deal, Alcoa's statement from paragraph 2 onwards

July 1 (Reuters) - Australia's South32 S32.AX said on Wednesday it has agreed to sell most of its aluminium assets to Alcoa AA.N for an implied enterprise value of up to $5.6 billion.

Alcoa will acquire the diversified miner's individual interests in Australia's Worsley Alumina, South Africa's Hillside Aluminium, Brazil's MRN bauxite mine, Brazil Alumina refinery and Brazil Aluminium smelter under the deal.

The U.S.-based aluminium major will also take over related rehabilitation provisions of around $1.2 billion for the projects, South32 added.

"Our business will be simpler with a portfolio of higher margin upstream operations, reduced complexity and greater resilience," said incoming CEO Matthew Daley, who assumed the role on July 1.

"This will enable a leaner, lower-cost operating model that will deliver ongoing value through an anticipated US$125M per annum reduction in overhead costs as new support structures are implemented."

The transaction is expected to complete in the second half of 2027.

In a separate statement, Alcoa said that the deal is expected to generate synergies of around $900 million in net present value through operational optimization across complementary assets.