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US DoJ Proposes Novelis to Divest Automotive Body Sheet Biz in North America

Metal News - Published on Thu, 14 May 2020

Image Source: wikimedia.org
The US Department of Justice is proposing a federal court to order Hindalco-owned American company Novelis to divest Aleris Corporation's entire aluminium automotive body sheet operations in North America to satisfy competitive concerns. Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division said "Today's proposed divestiture preserves competition in the market for aluminum automotive body sheet and protects automakers and American consumers by requiring the full divestiture of Aleris' North American aluminum automotive body sheet operations."

The proposed final judgment follows the US' March 9 arbitration win.

Prior to filing its civil antitrust lawsuit to block the merger, the Department's Antitrust Division reached an agreement with Novelis and Aleris to refer the matter to binding arbitration if Novelis and Aleris were unable to resolve the US' competitive concern with the transaction.

Under the arbitration terms, Novelis agreed to divest Aleris' aluminum automotive body sheet operations in North America if the US prevailed in the arbitration.

Source :

Posted By : Rabi Wangkhem on Thu, 14 May 2020
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