Novelis gets European Commission nod for Aleris acquisition

Novelis, a subsidiary of Hindalco Industries, on Tuesday announced that the European Commission has approved its proposed acquisition of Aleris Corporation. The approval is conditioned upon the sale of Aleris' plant in Duffel, Belgium, which produces aluminum for the automotive and specialties markets, a release said here.

Novelis is working expeditiously to market the plant to potential buyers and sign a definitive agreement, subject to European Commission approval, it added. With this conditional approval in the European Union, as well as a clear path forward for approval in the US, Novelis continued to work closely with the Chinese State Administration for Market Regulation (SAMR) to receive its approval, it added.

"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 Steve Fisher, President and CEO, Novelis Inc. Overall, this transaction will strengthen the company's ability to compete against steel in the automotive market, meet growing customer demand for aluminum, achieve its recycling goals, and bolster its sustainability platform worldwide, he said.

"In addition, it will further enhance our strategic position in Asia and diversify our overall product portfolio," he added. The company expects to close the transaction by January 21, 2020, the outside date under the merger agreement, the release added..

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