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Aluminum October 02, 2019 01:30:45 PM

Novelis Receives Regulatory Nod for Aleris Acquisition

Paul Ploumis
ScrapMonster Author
The approval is subject to sale of Aleris’ Duffel, Belgium plant, which manufactures aluminium for the automotive and specialties markets.
Novelis Receives Regulatory Nod for Aleris Acquisition

SEATTLE (Scrap Monster): Novelis, Inc., a subsidiary of Hindalco Industries, announced that it has received conditional approval from the European Commission for its proposed acquisition of Cleveland-based Aleris Corporation. The approval is subject to sale of Aleris’ Duffel, Belgium plant, which manufactures aluminium for the automotive and specialties markets.

According to company press release, Novelis is working expeditiously to sign a definitive agreement by marketing the plant to a potential buyer. The company is working closely with the Chinese State Administration for Market Regulation (SMAR) for its approval. The company expects to close the transaction by January next year as per the merger agreement, said the press release.

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Steve Fisher, President and CEO, Novelis Inc., in a statement, noted that the EC nod is a big step forward in bringing Novelis and Aleris together. The merger will benefit its customers, employees and the aluminium industry as a whole, he said. The transaction will further enhance Novelis’ strategic position in Asia and boost diversification of its overall product portfolio, Fisher added.

The U.S. Department of Justice (DOJ) had earlier filed a lawsuit, seeking to block the acquisition, citing concerns on higher prices of aluminium sheets used to make cars. It must be noted that Novelis is vigorously defending the DOJ lawsuit.