Mitsubishi Materials’ Aluminum Business to be Acquired by Apollo Funds

SEATTLE (Scrap Monster): A portfolio company owned by funds managed by affiliates of U.S.-based Apollo Global Management has entered into a definite agreement with Japanese Mitsubishi Materials Corporation to acquire the latter’s aluminum business for an undisclosed sum.

According to company press release, the transaction covers the Aluminum Rolled & Extruded Products Business of Mitsubishi Aluminum Co., Ltd. The transaction is expected to be completed by March next year, subject to customary closing conditions and necessary regulatory approvals.

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The decision to divest its aluminum business comes in the midst of forecasts of strong growth to aluminum market over the coming years. The company stated difficulties to find synergies with its other core businesses such as copper products as the primary reason for the divestment.

Further to the deal, Mitsubishi Materials will book a $251 million loss under restructuring charges in the first quarter of 2022.

In a separate deal, it will also acquire all of the shares of aluminum beverage can manufacturer Universal Can Corporation, which is partly owned by Mitsubishi Materials Corporation.