Home Business $2.5bn US aluminium co bidding by Hindalco

$2.5bn US aluminium co bidding by Hindalco


(G.N.S) Dt. 05
Hindalco industries is among potential buyers that submitted bids for US aluminium producer Aleris, people with knowledge of the matter said, as billionaire owner Kumar Mangalam Birla moves ahead with plans to expand his overseas operations.
Mumbai-listed Hindalco made a non-binding offer through its US unit, Novelis, and will now conduct due diligence, according to the people. A deal could value Aleris at around $2.5 billion including debt, the people said, asking not to be identified because the information is private. Ohio-based Aleris, which is owned by Oaktree Capital Group and Apollo Global Management, had earlier agreed to sell itself to Zhongwang USA for an enterprise value of $2.3 billion. The transaction, left in limbo after US officials raised national-security concerns about the Chinese-backed bidder, was called off in November after multiple extensions.
Any deal could help buck the decline in overseas acquisitions by Indian companies, which fell to an eight-year low of $4.25 billion in 2017, according to data compiled by Bloomberg.
Novelis swung to a profit in the quarter ended September 30 and raised its pre-tax earnings guidance for the financial year, buoyed by a rally in aluminium prices.
There’s no certainty Novelis will proceed to make a binding offer for Aleris, and other bidders could emerge, the people said. A representative for Aditya Birla Group, the parent company of Hindalco, didn’t immediately reply to emailed queries. Spokesmen for Aleris and Oaktree declined to comment, while a spokesman for Apollo said he couldn’t immediately comment.

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