14. November 2017 | Industry

Zhongwang USA acquisition of Aleris cancelled

Aleris Corporation has announced that the company’s planned acquisition by Zhongwang USA LLC will not proceed. The merger agreement between the parties expired by its terms on 12 November 2017. The merger was subject to customary regulatory approvals, including approval from the Committee on Foreign Investment in the United States. In July the Committee raised concerns about the transaction, and the parties withdrew their filing while extending the merger agreement to allow for additional discussions.

“While this is not the outcome we intended, we remain committed to our growth strategy and have made great strides over the past year in expanding our capacity and developing the capabilities required to meet the future demands of our industry. This includes our automotive expansion project in Lewisport, Kentucky, which is beginning to serve customers,” said Aleris chairman and CEO, Sean Stack.

Since 2010, Aleris has been owned and controlled by a group led by certain investment funds of Oaktree Capital Management as well as certain funds managed by Apollo Management. “Our ownership group remains committed to Aleris and highly supportive of the company's strategy,” said Stack.