Birla closes in on Aleris deal, ties up $2.6 billion in funding

MUMBAI: Almost eight months after the Aditya Birla group began negotiations to acquire Ohio-based aluminium maker Aleris Corp., the talks are heading towards a definitive agreement, likely to be signed in the next few weeks, said two people directly aware of the development, requesting anonymity, as the discussions are private.

According to the people cited above, the negotiations had slowed down primarily due to antitrust issues surrounding Aleris.

The talks have revived after the managements of Aleris and the Aditya Birla group, represented by its North America subsidiary Novelis, reached an agreement over the extent of responsibility both sides will bear to pass the scrutiny of the Committee on Foreign Investment (CFI).

CFI, the US government body that reviews foreign investments in domestic firms and determines whether those potential investments impact national security, had earlier rejected an acquisition bid from Chinese aluminium maker Zhongwang.

Aleris makes rolled fabricated aluminium products and has 13 manufacturing facilities across North America, Europe and China, according to the company website. It caters to different sectors, including aerospace, automotive, defence, building and construction, transportation, packaging and consumer goods.