Novelis expects Aleris acquisition deal to close by early next year
According to a recent report, Hindalco’s US-based subsidiary Novelis is expected to close the deal of the acquisition of Aleris Corporation by January 21, 2020. But currently the company is facing an anti-trust lawsuit in the US over its proposed $2.58 billion purchase of Aleris.
The lawsuit was filed by the US Justice Department because of the concern over higher prices of aluminium sheet used for making cars. In the lawsuit, the justice department had described Aleris as an aggressive competitor and said the deal would give Novelis up to 60 per cent of the projected domestic capacity.
However, Novelis argued that the justice department had ignored the competition from steel automotive body sheet. Currently, negotiations between Novelis and the US justice department hinge on the rolling mill at Lewisport, Kentucky, and its 200 kilotonne automotive finishing line.
Meanwhile, on October 1, Novelis announced about the approval of the European Commission to its purchase of Aleris, which was on the condition of the sale of Aleris’ plant in Duffel, Belgium. The Duffel plant has an auto facility of 80kt and a 100kt capacity in specialities.
Satish Pai, managing director of Hindalco, says the company is in talks with a couple of interested local buyers and expects to close the sale by November-end.
Mr. Pai also expects regulatory approvals in China to be sought after the European Commission is satisfied with the plant sale and gives its final approval.
source: ALCIRCLE.COM
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