Novelis Buys Korean Subsidiary

Atlanta-based Novelis Inc., a manufacturer of aluminum rolled products, has completed the acquisition of its Korean subsidiary.
 

Novelis had previously announced it would purchase 31.2 percent of the outstanding shares in Novelis Korea Ltd., its Korean subsidiary, for $350 million, raising its ownership to more than 99 percent. 
 

“Our decision to buy out the minority shareholders in Novelis Korea represents another key step in Novelis' strategy to prepare for future growth in Asia,” Phil Martens, Novelis president and CEO, says.“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.”
 

Nov. 18, 2011, Novelis announced its agreement with Taihan Electric Wire Co. Ltd. and other minority shareholders of Novelis Korea Ltd. to purchase 31.2 percent of the outstanding shares in the Korean corporation for $350 million. Novelis currently owns 67.9 percent of Novelis Korea and, following the closing of the acquisition, will own more than 99 percent of the outstanding shares. The acquisition is expected to close by Dec. 31, 2011.