EU regulators approve Hindalco`s acquisition of Novelis
09 May 2007
Brussels: the European Commission yesterday approved Hindalco Industries Ltd''s acquisition of the Atlanta-based flat rolled aluminium products maker Novelis Inc.
Novelis was spun off from Canadian aluminium giant Alcan Inc. two years ago.
A statement from the European Union said, "After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area or any substantial part of it."
In February when the all-cash deal was announced, K M Birla, chairman, Hindalco said that the cost of the acquisition, including Novelis'' debt of $2.4 billion, would be $5.9 billion.
Birla
also said, Novelis would add top-end products to Hindalco''s portfolio
and insulate it from commodity price volatility. Novelis customers have included
Coca Cola, General Motors, Ford Motor Co. and the world''s biggest can maker, Rexam
Plc.