New Delhi: In what is set to be the second largest foreign buy by an Indian company, Birla owned Hindalco Industries on Sunday announced acquisition of American Aluminum sheet maker Novelis for as much as $6 billion.
Novelis is the world's largest maker of flat-rolled aluminum products used to make cars and cans.
It supplies to companies like Coca-Cola and Ford. The Novelis board has recommended the Hindalco offer to its shareholders.
This will make the group company Hindalco the world's largest player in the downstream aluminium business.
Announcing the acquisition, Birla group chairman Kumar Mangalam Birla said that the deal would include $2.4 billion dollars in debt.
Novelis shareholders would receive $44.93 per share as part of the deal, which is 16.5 per cent over Saturday's closing price.
“The shareholders of Atlanta-based Novelis, a demerged entity of Canadian aluminium giant Alcan, would meet after the court's approval,” PTI quoted Birla saying.
Novelis was carved out of Canadian aluminium major Alcan, whose downstream business was separated in 2004.
The new entity was listed on the New York Stock Exchange and the Toronto Stock Exchange.
There are three big aluminium corporates in North America - Norsk Hydro, Allares and Novelis.
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