After receiving the EU Commission’s final clearance, rolled products manufacturer Novelis completed the acquisition of its former rival Aleris on 14 April.
Novelis will integrate Aleris’ 13 plants across North America, Europe and Asia. However, to satisfy regulatory conditions, the company is required to divest Aleris’ plants in Lewisport, Kentucky, USA, and in Duffel, Belgium. The plant in Duffel will be sold to Liberty House, which is a part of the Gupta Family. Liberty House intends to acquire the Duffel facility under its newly formed aluminium group ‘Alvance’ at a purchase price of EUR 310m.
Acquisition creates an industry champion
“The Aleris deal marks a major milestone for Novelis, on its path to global leadership. The closure of this deal amidst challenging market conditions, reflects our conviction in the Aleris business and its value to our metals portfolio. Periods of turmoil have historically seen the emergence of champions, powered by quality leadership and sound business fundamentals. This is a long-term strategic bet, much like Novelis was in 2007,” said Kumar Mangalam Birla, chairman of the Aditya Birla Group and Novelis Inc. “The Aleris deal crucially enables the further diversification of our metals portfolio into other premium market segments, most notably aerospace. Through the creation of an industry champion, we are reinforcing our commitment to our customers, employees and shareholders. At the same time, with this further expansion in our aluminium portfolio, we have taken a decisive step towards a more sustainable future.”
Acquisition strengthens market position in Asia
With the addition of Aleris’ operational assets and workforce, Novelis is poised to more efficiently serve the growing Asia market by integrating complementary assets in the region including recycling, casting, rolling and finishing capabilities. The company will also add aerospace to its portfolio and enhance its ability to continue to bring innovative products to market by strengthening its R&D capabilities.
“Today is a transformational moment in our company’s history, and I’ve never been more confident in our ability to deliver even more value to our customers, colleagues and the communities where we live and work,” said Steve Fisher, head of Novelis. “With a world-class workforce, a presence in the most competitive and technically demanding end-markets, and the ability to deliver rapid, adaptive and sustainable solutions, Novelis will be able to even better serve our customers.”