The proposed acquisition of Aleris by Novelis has been approved by the European Commission under the EU Merger Regulation on condition that Novelis would sell Aleris' aluminium automotive body sheets business in Europe.
“To address the Commission's competition concerns, the parties offered to divest Aleris' entire aluminium automotive body sheet business in Europe, including its production plant in Duffel, Belgium. In order to preserve its viability, the Duffel plant's divestiture will also include other products currently manufactured at that plant,” The European Commission said in a statement.
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Novelis, a subsidiary of Hindalco Industries Limited, is a global manufacturer of semi-finished aluminium products and recycler of aluminium. It operates several manufacturing facilities across North America, South America, Europe and Asia. Aleris produces aluminium rolled products in North America, Europe and Asia.
“The Commission found that the divested assets constitute a viable integrated business that would enable a suitable buyer to effectively compete with the merged entity. Feedback received from market participants on the proposed commitments confirmed the Commission's view.”
“The Commission therefore concluded that the transaction, as modified by the commitments, would no longer raise competition concerns. The decision is conditional on full compliance with the commitments.”
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