Hindalco to Take Over Novelis
Indian aluminum and copper producer Hindalco Industries Ltd. plans to pay $3.6 billion to take over Canadian aluminum producer Novelis Inc. The acquisition would make Hindalco the largest rolled-aluminum products manufacturer in the world. Hindalco would also take over Novelis’ debt of $2.4 billion. The acquisition, which is subject to some regulatory approvals, is likely to be completed by the second quarter of 2007.
Hindalco is the flagship company of the Indian conglomerate the Aditya Birla Group, with interests in cement, metals, telecommunication and textiles. Novelis manufactures aluminum sheet used in cars and construction, recycles aluminum cans and supplies industries ranging from auto and transportation to beverage, food packaging, machinery and printing. Novelis has 36 manufacturing facilities in 11 countries.