Novelis Ordered to Divest Aleris’ Lewisport, Kentucky Plant

SEATTLE (Scrap Monster): The Department of Justice (DoJ) has won the historic arbitration of the dispute challenging the proposed merger of Novelis, Inc. and Aleris Corporation.

In resolution of the civil antitrust lawsuit challenging  the merger, the arbitrator ruled that aluminum and steel are not in the same relevant product market for automotive body sheet (ABS) under antitrust laws. Subsequently, Novelis must divest Aleris' Lewisport, Kentucky, plant. However, the company need not wait for divesting of the assets in order to close the acquisition deal, provided, it obtains European Commission (EC) approval of the buyer for Aleris' plant in Duffel, Belgium.

Steve Fisher, President and CEO, Novelis Inc. commented that the decision ignores the reality of the automotive body sheet market. The company will now work to divest Aleris' North American automotive business, including the Lewisport, Kentucky, plant. Upon receipt of EC approval for Duffel plant sale, the company will close the transaction as quickly as possible, Fisher said.

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Meantime, Makan Delrahim, Assistant Attorney General of the DoJ Antitrust Division cited the decision as a victory for automakers and American consumers and taxpayers and that it will preserve competition in the market for aluminum auto body sheet.