Aluminium rolling and recycling company Novelis Inc., a wholly owned subsidiary of Hindalco Industries Ltd, said on Tuesday that the European Commission has approved its proposed acquisition of US-based Aleris Corp, a maker of aluminium rolled products, with 13 facilities in North America, Europe and China.
The approval is conditional on the sale of Aleris’s plant in Duffel, Belgium, which produces aluminium for the automotive and specialties markets.
“Novelis is working expeditiously to market the plant to potential buyers and sign a definitive agreement, subject to European Commission approval,” said the company.
Mint reported on 30 August that the company was hopeful that its offer to sell the auto-sheet manufacturing plant in Duffel will push through European approvals for its $2.58 billion acquisition of Aleris, without local regulators worrying that the deal would affect input prices for carmakers in the region.
The company is also challenging a US department of justice lawsuit to block its acquisition of Aleris.
It is set to go into arbitration with the department. If that does not work, it will consider offering concessions, the Hindalco management said last month. Novelis reiterated that it intends to close the transaction by 21 January 2020, the outside date under the original merger agreement.
Novelis continues to work closely with the Chinese State Administration for Market Regulation to receive its approval, following the conditional approval in the European Union and the clear path forward for approval in the US, it added.
“Today’s announcement is another step forward in bringing Novelis and Aleris together, which will benefit our customers, employees and the aluminum industry as a whole,” said Steve Fisher, president and chief executive of Novelis.
“Overall, this transaction will strengthen our ability to compete against steel in the automotive market, meet growing customer demand for aluminum, achieve our recycling goals, and bolster our sustainability platform worldwide. It will also enhance our strategic position in Asia and diversify our overall product portfolio,” said Fisher.
Source: Mint