Mumbai: Kumar Mangalam Birla’s Hindalco Industries Ltd has gathered a consortium of Asian, US and European banks to fund its takeover of aluminum producer Aleris Corp.
Novelis Inc, the US unit of Hindalco, has mandated a 20-strong bank group to arrange a $2.28 billion dual-tranche loan that will finance the purchase of US-based Aleris, according to people familiar with the matter. Hindalco is part of the Aditya Birla Group, also led by the tycoon, which has been on an acquisition spree.
The acquisition will expand Hindalco’s presence in the automotive sector.
The facility includes a $1.5 billion 12-month bridge loan, and a $775 million five-year tranche, according to the people.
Also read: Novelis may occupy driver’s seat at Hindalco’s consolidated business
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