US aluminum producer Novelis is set to secure EU antitrust approval for its US$2.6 billion bid for Aleris, reported Reuters on Thursday, August 29, .
Novelis, which is US-based but owned by India’s Hindalco Industries, has agreed to sell Aleris’ Belgian plant, the people said, to address European Commission worries that the deal may reduce competition and lead to higher prices, hitting carmakers in particular.
Novelis, the world leader in aluminum rolled products and aluminum recycling, is seeking to diversify into the aerospace, automotive, beverage can, and construction industries.
It had sought to ease regulatory concerns by offering to increase capacity and add 80 new jobs at Aleris’ Duffel plant, but the competition enforcer forced the company to offer a far-reaching package of concessions, the people said.
“We are working constructively with the European Commission with the continued aim of closing the transaction by the end of this calendar year. We have no additional comment at this time,” Novelis said.
Full Content: Reuters
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