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Hindalco to buy Novelis for over $6 bn

Hindalco to buy Novelis for over $6 bn
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First Published: Sun, Feb 11 2007. 04 16 PM IST
Updated: Sun, Feb 11 2007. 04 16 PM IST
By Agencies
Hindalco Industries Ltd., India’s biggest producer of non-ferrous metals, plans to acquire Novelis Inc., a Canada-based aluminum-sheet maker for as much as $6 billion, company spokeswoman Pragnya Ram said today in Mumbai.
The Mumbai-based company plans to make an announcement at 5 p.m. in Mumbai, Ram said in a telephone interview.
Shares of Novelis have doubled since Jan. 25 on speculation the company may receive a takeover offer after several weeks of talks with potential acquirers. Novelis shares fell 2.5 percent to C$45.07 a share on Friday on the Toronto Stock Exchange.
Indian companies have been expanding overseas to tap mature industrial markets. Tata Steel last month succeeded in its $12 billion bid to acquire Corus Group Plc., the biggest British steelmaker, outbidding Cia. Siderurgica Nacional SA of Brazil.
Hindalco’s parent, the Aditya Birla Group, headed by billionaire Kumar Mangalam Birla, has interests in telecommunications, cement, metals, textiles and financial services.
Alcan, the world’s second-largest aluminum producer after Alcoa Inc., spun off Novelis to satisfy antitrust concerns after acquiring France’s Pechiney SA for about $4 billion in February 2004. In January 2005, Novelis agreed to sell about $1.4 billion in bonds as part of a $2.9 billion refinancing needed to repay loans from Alcan.
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First Published: Sun, Feb 11 2007. 04 16 PM IST