A Reuters report has said that Hindalco Industries-owned Novelis has agreed to sell its Aleris’ Belgian plant.
Shares of Hindalco Industries jumped almost 4 percent on August 30 after media reports said that the company-owned Novelis was set to secure European Union (EU) antitrust approval for its $2.6-billion bid for Aleris.
Novelis, which is US-based but owned by India’s Hindalco Industries, agreed to sell Aleris’ Belgian plant to address the European Commission's worries that the deal could reduce competition and lead to higher prices, hitting carmakers in particular, news agency Reuters quoted sources as saying.
Novelis, a world leader in aluminum rolled products and aluminum recycling, is seeking to diversify into aerospace, automotive, beverage can and construction industries.
For the June quarter, Hindalco Industries reported a 29 percent year-on-year fall in consolidated profit. Novelis adjusted EBITDA (as per US GAAP) increased 11 percent year-on-year (YoY) to $372 million and adjusted EBITDA per ton climbed 7 percent to $448 in Q1.
Novelis' net income—excluding special items—stood at $145 million, a 26 percent YoY rise.Shares of Hindalco Industries were trading 3.67 percent higher at Rs 186.40 on BSE at 1010 IST.The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .