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Aditya Birla Group expects Novelis Aleris Deal by January

Metal News - Published on Wed, 13 Nov 2019

Image Source: owensborotimes
Aditya Birla Group’s Novelis Inc, which is facing an anti-trust lawsuit in the US over its acquisition of Aleris Corp, expects to close the deal by 21 January, the outside date under the original merger agreement. Mr Satish Pai managing director, Hindalco said that “In the US, we have signed a consent decree with the Department of Justice. We will prove then through litigation and, if needed, the arbitration process, that aluminium and steel is one market for the auto industry in the US. He expects to close the sale of the 180kt Duffel plant by November-end and that the company is in talks with a couple of interested local buyers. Regulatory approvals in China will be sought after the European Commission is satisfied with the plant sale and gives its final approval.”

Last month, the US justice department filed a lawsuit to stop Novelis Inc’s proposed USD 2.58 billion purchase of Aleris because of concerns over higher prices of aluminium sheet used to make cars. In its lawsuit, the justice department described Ohio-based Aleris as an aggressive competitor and said the deal will give Novelis, the US based unit of Hindalco Industries Ltd up to 60% of the projected domestic capacity. Negotiations between Novelis and the justice department currently hinge on the rolling mill at Lewisport, Kentucky, and its 200 KT automotive finishing line. Novelis has argued that the justice department’s lawsuit ignores competition from steel automotive body sheet, even though steel automotive body sheet is currently used for nearly 90% of the market.

On 1 October, the European Commission approved Novelis’ proposed acquisition of Aleris, a maker of aluminium rolled products, with 13 facilities across 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 specialities markets.

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Posted By : Arun Huidrom on Wed, 13 Nov 2019
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