Atlanta’s rolled and recycled aluminium firm Novelis Inc. said yesterday that its proposed acquisition of Aleris has been approved by the European Commission.
Per the firm, the approval is contingent upon Novelis’ sale of Aleris’ Duffel operations, which produce automotive aluminium and specialty aluminium products. Novelis says it is diligently working to find a new buyer, which would also require approval from the European Commission.
Steve Fisher, President and CEO, Novelis Inc., greeted the decision as a win for all parties involved in the aluminium value chain.
“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. Overall, this transaction will strengthen our 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. In addition, it will further enhance our strategic position in Asia and diversify our overall product portfolio.”
Novelis says it expects approval from United States regulators to proceed smoothly, leaving only a sign-off on the deal by officials from the People’s Republic of China. Closing on the deal is still expected by the merger’s end date in late January 2020.
Novelis is a subsidiary of Mumbai’s Hindalco Industries Ltd. Based in Atlanta, the firm accounts for almost half of Hindalco’s consolidated revenue. The world’s largest recycler of aluminium, Novelis conducts operations in ten different countries, employs around eleven thousand people, and reported US$10 billion in revenue for the most recent fiscal year.