The Hindalco Novelis merger marks one of the biggest mergers in the aluminum industry. The deal was a significant step in Hindalco’s aim of. Kumar Mangalam Birla on Aleris buy, Voda-Idea merger and cement Why would you say Aleris is a perfect fit for Novelis and Hindalco?. Mumbai: Hindalco Industries Ltd has offered to buy Novelis Inc. in a $6 billion all- cash deal that will marry the world’s 13th largest maker of aluminium with a.

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Also one of the reasons which lead to an immediate fall in the prices of for Hindalco is the fact that Novelis has a high amount of debt which is in the range of 2. Hindalco will take a call on joining the mefger later. Hostile and Friendly Takeover. The counterview to the argument that deal being over-priced is that Hindalco is getting a ready-made market, ready-made customers, ready product profile and its size has also tripled by the merger.

The Hindalco Novelis merger was ultimately completed on 1st June It is a widely held company and its shareholders are novwlis hedge funds and institutional investors. It is all of the balance sheet of Novelis which is the point to underline.

The ratio is at present at 0. Annually, novleis recycle more than 35 billion used beverage cans — enough to circle the earth more than times. Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings. Fill in your details: UBS is the financial advisor to Hindalco. Post-acquisition, over 50 per cent of the group’s business could come from operations outside India, which is currently at 30 per cent.


I understand they are into value added products and that will give it a boost, but going forward what is the kind of synergy benefits that you see between the two companies? Reasons Behind Merger and Acquisition. Kumar Mangalam Birla steers talks to bring home Aleris. A strategy lies behind the proposed merger between India’s largest aluminum producer, Hindalco Industries, and Canada’s Novelis nyse: Printing and Lithography e.

Hindalco to acquire Novelis for $6 bn

Once that is done, it can supply the raw material to Novelis at a very economic cost as Novelis does not produce the inputs to its process aluminum in part or whole. The benefits to Hindalco from this deal were increase in its global presence and access to the most advanced technology in the industry.

Difference between Merger and Acquisition. Drag according to your convenience. We believe that Novelis can get the debt at least a couple of bps if not even lower as compared to Aleris. There hndalco been a school of thought which says that Hindalco which paid a price of about 6 billion USD is a little too much for the merger.

Aleris acquisition makes Hindalco largest aluminium company in world: Kumar Mangalam Birla

With aluminum prices going over nogelis the roof, Novelis has to bear it all. From the performance reports, it was evident that Novelis had incurred huge losses which will tend to decrease as most of its contracts with tapped prices will get over by the end of Terms in Merger and Acquisition. Com All Rights Reserved. Novelis is globally positioned, operating in 11 countries with approximately 12, employees.


Novelis is a global leader in the production of aluminum rolled products market. This will alert our moderators to take action Name Reason for reporting: Will Donald Trump approve? In the words of Mr. Read more on Kumar Mangalam Birla.

Hindalco Novelis Merger | World Finance

How do you look at the valuation? Get instant notifications from Economic Times Allow Not now. GM – news – people. Building and construction b.

Watch the latest videos on YouTube. History of Merger and Acquisition.

Synergy The combination of Hindalco and Novelis will noveliss a global integrated aluminum producer with low-cost alumina and aluminum production facilities combined with high-end aluminum rolled product capabilities. Inthe company acquired a The most important synergy hondalco the companies can be looking for with this merger is the fact that Novelis is a producer of aluminum products whereas Hindalco is the lowest cost base metal producer in the world as far as aluminum is concerned.

The important aspects of the agreement that was signed on 10th February between Hindalco and Novelis are — The deal was values at approximately 6 billion US dollars. This deal made Hindalco one of the leading players in the global aluminum industry.