Mitsubishi Materials Corp to divest its aluminium business amid the global demand for metal product mounts
On 25th November 2021, Mitsubishi Materials Corporation, the Japanese manufacturing company said that it will sell its aluminium business that produces beverage cans and automotive parts, to the US investment fund Apollo Global Management for an undisclosed amount.
The company in a statement said that even though, the aluminium market is anticipated to scale globally, but Mitsubishi Materials has categorically decided to divest its aluminium business as it is complicated to find an alliance with its other business segments such as copper products for electric vehicles and cement.
Mitsubishi Material further added that due to the outcome of the deal will book a 29 billion yen or $251 million loss as a restructuring charge in the January-March quarter, but the loss has been discounted in its full-year earnings forecast announced earlier this month.
“The stake in Indonesia's copper smelter PT Smelting, its joint venture with PT Freeport Indonesia, will fall to 35% from 60.5% after an expansion of the smelter's processing capacity”, the company said.
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