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Hindalco to buy Alcan stake in Utkal Alumina

Hindalco to buy Alcan stake in Utkal Alumina
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First Published: Thu, Jul 19 2007. 12 40 AM IST
Updated: Thu, Jul 19 2007. 12 40 AM IST
Mumbai: Hindalco Industries Ltd, part of the Aditya Birla Group, has agreed to buy the 45% stake of its joint venture partner, Alcan Inc., the world’s third largest aluminium company, in Utkal Alumina International Ltd. The terms of the transaction were not disclosed. According to a statement released by the Aditya Birla Group, the deal is likely to close in the next 30 days. Hindalco shares gained 3.22% to close at Rs184.30 on the Bombay Stock Exchange on Wednesday, while the benchmark Sensex rose 0.07%.
Utkal was established in 1992 to develop a bauxite mine and a 1.5 million tonnes per annum alumina refinery in Orissa. Alcan had announced its intention to sell its interest in Utkal on 12 April, saying that it didn’t have enough influence over the venture. “Given constraints ... that limit Alcan’s ability to participate in key decisions, (we) believe that we have acted in the best interests of all our stakeholders,” Jacynthe Cote, President and CEO of Alcan Bauxite and Alumina, had said in a statement on 12 April.
Alcan is in the process of being acquired by mining major Rio Tinto. The company will continue to work with Hindalco on some contracts and projects, said Cote in a statement issued on Wednesday.
Bloomberg contributed to this story
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First Published: Thu, Jul 19 2007. 12 40 AM IST