Novelis receives approval from European Commission for proposed acquisition of Aleris
Novelis Inc, a subsidiary of Aditya Birla-led Hindalco Industries, has said that the European Commission has approved its proposed acquisition of Aleris Corporation.
The approval is conditioned upon the sale of Aleris’ plant at Duffel in Belgium which produces aluminium for the automotive and specialities markets.
Novelis is working expeditiously to market the plant to potential buyers with the chosen counterparty and the definitive agreement for divestiture subject to European Commission approval.
With this conditional approval in the European Union, as well as a clear path forward for approval in the United States, Novelis continues to work closely with the Chinese State Administration for Market Regulation (SAMR) to receive its approval.
“The announcement is another step forward in bringing Novelis and Aleris together which will benefit our customers, employees and the aluminium industry as a whole,”said Steve Fisher, President and CEO, Novelis Inc.
“Overall, this transaction will strengthen our ability to compete against steel in the automotive market, meet growing customer demand for aluminium, achieve our recycling goals and bolster our sustainability platform worldwide. In addition, it will further enhance our strategic position in Asia and diversify our overall product portfolio,” he said in a statement.
The company expects to close the transaction by January 21 next year, the outside date under the merger agreement.
Novelis Inc operates 23 facilities in 9 countries, has about 11,000 employees and recorded 12.3 billion dollars in revenue for its 2019 fiscal year. It is a subsidiary of Hindalco Industries, an industry leader in aluminium and copper, and metals flagship company of the Aditya Birla Group. (ANI)