Hindalco completes Novelis acquistion

New Delhi, May 15 (UNI) Hindalco, the Aditya Birla Group's flagship company, today announced the completion of its acquisition of Novelis, making it the world's largest aluminum rolling company and one of the biggest producers of primary aluminum in Asia.

On February 10 this year, Hindalco entered into an agreement with Novelis to acquire the company in an all-cash transaction which values Novelis at about six billion dollars, including debt.

''The combination of Hindalco and Novelis establishes an integrated producer with low-cost alumina and aluminum facilities combined with high-end rolling capabilities and a global footprint. The complementary assets and expertise of the team provides a strong platform for growth and success,'' said chairman Hindalco Kumar Mangalam Birla.

According to the agreement, Novelis shareholders will receive 44.93 dollar in cash for each outstanding common share.

Novelis shareholders approved the transaction by an overwhelming majority (99.8 per cent) in a special meeting on May 10.

Hindalco is consistently increasing its share of value-added products, which today stand at nearly 60 per cent. The Novelis acquisition gives it an instant leg-up with its technologically sophisticated rolled aluminium products' capability, apart from a scale and a global footprint, said a statement.

''We are very pleased to complete this transaction with Hindalco,'' said Novelis' Chief Operating Officer Martha Brooks.

She added the arrangement has created significant value for Novelis shareholders while at the same time providing new opportunities for the future of the combined company.

''With the support of Hindalco and the Aditya Birla Group, we will be able to accelerate the Novelis business strategy, leveraging our world-class assets for the production of premium aluminum products,'' Ms Brooks said.

UNI