Novelis Inc. (subsidiary of Hindalco Industries) on 02 October 2020 announced it has sold the former Aleris plant in Duffel, Belgium to ALVANCE, the international aluminium business of the GFG Alliance.
Previously, the European Commission and Chinese State Administration for Market Regulation determined that Novelis' acquisition of Aleris, which closed earlier this year, could proceed on the condition that Novelis divest the Duffel plant to a third party that met certain buyer suitability requirements. Both regulators have now approved ALVANCE as a suitable buyer and have permitted the sale to be completed.
In November 2019, ALVANCE agreed to acquire the Duffel facility for 310 million.
At closing on September 30, 2020, Novelis received 210 million in cash. The parties have agreed to a post-closing arbitration process regarding the payment of the remaining 100 million.
The Aleris acquisition provides a strong pro-forma financial profile for Novelis with many strategic benefits and continues to be value accretive, with the long term outlook in line with the original acquisition case.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU