The European Commission approved Novelis’ acquisition of Cleveland-based Aleris conditioned upon the sale of the Aleris plant in Duffel, which produces aluminum for the automotive and specialties markets and is one of the largest rolling mills in Europe.
In early October when Novelis announced the European Commission’s approval, the company said it expected to close the transaction by Jan. 21, 2020, the outside date under the merger agreement.
The price of the Duffel sale was not disclosed, according to the Reuter’s report, which also quotes a statement from GFG Alliance that states, “The deal is consistent with GFG Alliance’s strategy to create an international, vertically integrated aluminum business.”
The Duffel sale is subject to regulatory approval. GFG Alliance purchased Europe’s biggest aluminum smelter in France last year from Rio Tinto Plc for $500 million and the Lochaber smelter in Scotland in 2016, Reuters notes.
Duffel buys some of its primary metal from GFG’s French smelter, according to Reuters, and can produce 240,000 metric tons of semifinished aluminum products per year.