Chinese tycoon to buy US aluminium maker
A CHINESE billionaire has agreed to acquire US aluminium maker Aleris Corporation for US$2.33 billion including debt, the latest overseas takeover by a Chinese firm.
Zhongwang USA, an investment firm controlled by Liu Zhongtian, said in a statement it would pay $1.11 billion in cash for Clevelandbased Aleris and take on its net debt of $1.22 billion.
Mr Liu is the founder and chair of Hong Kong-listed China Zhongwang, the world’s second-largest manufacturer of industrial aluminium extrusion products.
His net worth is estimated at $3.1 billion by American financial publication Forbes.
“This acquisition is an international expansion to establish a complementary business foothold,” Mr Liu was quoted as saying.
Chinese companies have been snapping up overseas assets in recent years as they try to expand their markets and as their country’s economic growth slows.
A US national security regulator has approved state-owned China National Chemical Corp.’s planned $43 billion takeover of Swiss pesticide and seed giant Syngenta in what would be the biggest overseas acquisition by a Chinese firm.
The Aleris deal is intended to help the Chinese tycoon tap into the North American and European markets as the US firm has a partnership with Figeac Aero, a supplier to companies including Airbus, Boeing and Bombardier. –