The European Commission has approved Novelis’ proposed acquisition of Aleris Corp. The approval is conditional upon the sale of Aleris’ plant in Duffel, Belgium, which produces aluminium for the automotive and specialties markets. Novelis says it is working expeditiously to market the plant to potential buyers, with the chosen counterparty and the definitive agreement for divestiture subject to EU Commission approval.
“Today’s announcement is another step forward in bringing Novelis and Aleris together, which will benefit our customers, employees and the aluminium industry as a whole,” said Steve Fisher, president and CEO of Novelis. “Overall, this transaction will strengthen our ability to compete against steel in the automotive market, meet growing customer demand for aluminium, 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,” he continued.
Novelis continues to work closely with the Chinese State Administration for Market Regulation (SAMR) to receive its approval, and claims to be on a clear path forward for approval in the US. The company expects to close the transaction by 21 January 2020, the outside date under the merger agreement.