New Delhi: The European Commission has given its conditional approval for Novelis Inc, part of Aditya Birla Group, to acquire aluminium-rolled product maker Aleris Corporation.
Novelis is overseas subsidiary of Group company Hindalco Industries Ltd. The approval is conditioned upon the sale of Aleris’ plant in Duffel, Belgium, which produces aluminum for the automotive and specialty markets, Hindalco Industries told the BSE.
“Novelis Inc announces that the European Commission has approved its proposed acquisition of Aleris Corporation,” Hindalco Industries said. It also said Novelis is working ‘expeditiously to market the plant to potential buyers, with the chosen counter-party and the definitive agreement for divestiture subject to European Commission approval’. With the conditional approval in the European Union, as well as a clear path forward for nod in the US, Novelis continues to work closely with the Chinese State Administration for Market Regulation to receive its approval, the filing said.
“Today’s announcement is another step forward in bringing Novelis and Aleris together, which will benefit our customers, employees and the aluminum industry as a whole,” said Novelis Inc president and chief executive officer Steve Fisher.
Overall, this transaction will strengthen the company’s ability to compete against steel in the automotive market, meet growing customer demand for aluminum, achieve our recycling goals, and bolster our sustainability platform worldwide, Fisher said adding that it will further enhance our strategic position in Asia and diversify our overall product portfolio. The company, Hindalco said, expects to close the transaction by 21 January 2020, the outside date under the merger agreement. Novelis is the leading producer of flat-rolled aluminum products.