Metals scrap

26 July 2018 By Una Galani Follow @ugalani

Hindalco is snagging aluminium producer Aleris for $2.6 bln after CFIUS concerns torpedoed a previous bid from a Chinese buyer. Hindalco’s U.S. arm Novelis is paying more, but the numbers stack up. Mogul Kumar Mangalam Birla is smartly taking advantage of the trade war for now.

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India’s Hindalco on July 26 agreed to buy U.S. aluminium producer Aleris in an all-cash deal for $2.6 billion, including debt.

The Mumbai-listed group is acquiring the business through its privately held U.S. unit Novelis. Cleveland-based Aleris is owned by Oaktree Capital and Apollo Global.

Aleris had earlier agreed to sell itself to Zhongwang USA in a $2.3 billion transaction. That deal was scrapped last year after the Treasury Department’s Committee on Foreign Investment in the United States raised national-security concerns about the Chinese-backed bidder.

Indian media reported in January that Hindalco had submitted a bid for Aleris.
Novelis was advised by Goldman Sachs. Aleris was advised by Moelis. The deal is expected to close within 15 months.

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