Novelis Closes Sale of Former Aleris Plant in Duffel, Belgium

Novelis Inc., the world leader in aluminum rolling and recycling, today 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 Euro 310 million. At closing on September 30, 2020, Novelis received Euro 210 million in cash. The parties have agreed to a post-closing arbitration process regarding the payment of the remaining Euro 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.

Shares of HINDALCO INDUSTRIES LTD. was last trading in BSE at Rs.174.45 as compared to the previous close of Rs. 175.35. The total number of shares traded during the day was 418567 in over 3866 trades.

The stock hit an intraday high of Rs. 179.2 and intraday low of 173.5. The net turnover during the day was Rs. 73950652.

Source : Equity Bulls

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