Atlanta-based aluminum company Novelis Inc. has announced that China’s State of Administration for Market Regulation (SAMR) has approved its proposed $2.6 billion acquisition of Cleveland-based aluminum producer Aleris Corp.
As part of the approval, Novelis says it has agreed to sell the Aleris plant in Duffel, Belgium, to an independent, third-party buyer. The Duffel plant produces aluminum for the automotive and specialties markets.
“This is a significant step forward in uniting these two world-class manufacturing companies,” says Steve Fisher, president and CEO of Novelis Inc. “The approval we have received from China will allow us to further enhance our strategic position in Asia and diversify our overall product portfolio.”
Earlier in October, the European Union also approved Novelis’ proposed acquisition of Aleris. With SAMR’s approval and having received approval in the European Union as well as approval in the U.S., the company says it expects to close the transaction by Jan. 21, 2020, the outside date under the merger agreement.
Novelis reports that the transaction provides it with several benefits: It will help to strengthen its ability to compete against steel in the automotive market, it helps it to meet growing customer demand for more aluminum, it achieves the company’s recycling goals and it bolsters its sustainability platform worldwide.