China Aluminium Network
Novelis Buys Out Korean Subsidiary for $350 Million
Edited by : AL CIRCLE
1 min read
Aluminum products and recycling firm Novelis Inc. has purchased nearly all of the outstanding shares in its Korean subsidiary for $350 million in cash.
Novelis on Nov. 17 announced a deal with Taihan Electric Wire Co. Ltd. and other shareholders to buy 31.2 percent of the company, a move that would give Atlanta-based Novelis direct control over more than 99 percent of the subsidiary's shares.
The decision reflects the importance of Asia to the company's long-term growth strategy, said Phil Martens, the company's president and CEO, in a news release.
"We believe this transaction will provide Novelis with greater control of our manufacturing assets in the region, while at the same time helping to drive our ongoing initiatives for globally integrated operations," Mr. Martens said.
The share purchase follows the announcement in May that Novelis would spend $400 million to expand its aluminum rolling capacity and recycling infrastructure in Korea.
The deal is expected to close by the end of the year.
Novelis on Nov. 17 announced a deal with Taihan Electric Wire Co. Ltd. and other shareholders to buy 31.2 percent of the company, a move that would give Atlanta-based Novelis direct control over more than 99 percent of the subsidiary's shares.
The decision reflects the importance of Asia to the company's long-term growth strategy, said Phil Martens, the company's president and CEO, in a news release.
"We believe this transaction will provide Novelis with greater control of our manufacturing assets in the region, while at the same time helping to drive our ongoing initiatives for globally integrated operations," Mr. Martens said.
The share purchase follows the announcement in May that Novelis would spend $400 million to expand its aluminum rolling capacity and recycling infrastructure in Korea.
The deal is expected to close by the end of the year.
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