Novelis gets EU nod for proposed Aleris buyout

Novelis, the Us-based aluminium rolling and recycling company (part of the Aditya Birla Group), has said the European Commission has approved its proposed acquisition of Aleris Corporation.

The Commission is the European Union’s executive arm. The approval is conditional on sale of Aleris’ plant at Duffel in Belgium, which produces aluminium for the automotive and specialties markets, said the firm. Novelis is working to market the plant to potential buyers and sign a definitive agreement, subject to the Commission’s approval, it said.

“Overall, this transaction (deal with Aleris) 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,” said Steve Fisher, president and chief executive at Novelis.

The firm expects to close the European transaction by January 21, 2020, outside date under the merger agreement.

Aleris operates 14 production facilities in North America, Europe and Asia. Duffel is one of the largest rolling mills in Europe, producing rolled products from aluminum and special alloys.

It has CALP (Continuous Annealing Line with PreTreatment) 140-inch (3.556 m) hot rolling mill. Last month, there was a regulatory hurdle from the US department of justice. The latter filed a civil antitrust lawsuit, seeking to block the purchase by Novelis, citing a need to preserve competition in the North American market for rolled aluminum sheet in automotive applications.

Novelis had announced signing of a definitive agreement in July 2018 to acquire Aleris for $2.6 billion, including the assumption of debt.