Aleris purchase deal may delay by three months: Source says

According to a recent report, Novelis is in talks to extend the closure of its planned acquisition of US aluminium products maker Aleris Corporation by three months, as securing regulatory approvals delayed. In November 2019, a report stated that the company was expecting to close the purchase deal by January 21, 2020.

Although China has cleared the deal, authorities in the US are still critically examining it. In September last year, the US Justice Department had filed a lawsuit as well, citing that this acquisition may create a monopoly in the North American market for rolled aluminium sheet for automotive applications. 

A Moody’s note on the 13^th of January also sounded pessimistic about the closure of the deal on scheduled date. “The EU has advised it needs additional time to review the proposed buyer and this is not expected to be completed by the 21 January 2020 outside date in the merger agreement. Novelis is in discussions regarding the extension of this date," it added.

An Aditya Birla Group spokesperson said, “Novelis remains fully committed to completing the Aleris acquisition and continues to work with all relevant parties to do so as quickly as possible."