The shares of Hindalco Industries gained as much as 9 per cent on Wednesday after the company completed the acquisition of US-based Aleris Corporation through its wholly-owned subsidiary Novelis Inc.
At 12:55 pm, the shares were trading at Rs 119.85, up 4.32 per cent from its previous close, while the benchmark index Sensex gained 1.77 per cent and the BSE Metals index gained 3.75 per cent.
The acquisition of the US-based rolled products major, Aleris Corporation, positions Hindalco as one of the world’s largest aluminium companies, with a global footprint spanning 49 manufacturing facilities in North America, Europe and Asia.
With the addition of Aleris’ operational assets and workforce, Novelis is poised to serve the growing Asia market by integrating complementary assets in the region, including recycling, casting, rolling and finishing capabilities.On a trailing 12-month basis ended 31 December, legacy standalone Aleris’ adjusted EBITDA stood at $388 million, higher than that estimated at the time of deal announcement. Novelis will acquire 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, US, and Duffel, Belgium, as announced earlier.
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Hindalco Zooms on Completion of Aleris Acquisition
