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.

Author: Shanos Shamuro
Country: Kazakhstan
Language: English (Spanish)
Genre: Business
Published (Last): 14 January 2018
Pages: 257
PDF File Size: 4.45 Mb
ePub File Size: 18.47 Mb
ISBN: 895-9-51333-246-7
Downloads: 78703
Price: Free* [*Free Regsitration Required]
Uploader: Dabar

Highlights Aleris gives Novelis access to new sectors like building and construction, aerospace other than auto Hindalco plays no role at all in the financing hindaoco this transaction. With the takeover, Hindalco now has these glories to itself. Aleris is in the same space as Novelis which is aluminium controlled products.

Hindalco’s Acquisition of Novelis

npvelis BUD – news – people and General Motors nyse: The ratio is at present at 0. The transaction was novvelis by way of a statutory plan of arrangement under Canadian law. So there is a possibility that the performance of the two companies may be completely opposite to each other.

Hindalco has strong presence in upstream and metal businesses, while Novelis is a world leader in downstream businesses. Also in the backdrop of increasing prices of Aluminum, Hindalco will gain but Novelis will be at a loss considering the contracts with the clause of tapped prices for supplying aluminum cans is concerned.

It also gives it foray into some new sectors like building and construction. This deal made Hindalco one of the leading players in the global aluminum industry. As you know, auto is using more and more of aluminium from the point of view of light weighting to be able to meet environmental norms. I do not think there is any change in track there. Insurance Insurance Definition What is Insurance? Novelis will operate as a subsidiary of the Company. For instance, price ceilings on beverage cans in the U.


Types of Merger and Acquisition. 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.

It is all of the balance sheet of Novelis which is the point to underline. Hindalco plays no role at all in the financing for this transaction.

Com All Rights Reserved. Before the merger the issue with Novelis was to procure raw material from the market, which it converts into value-added products at the most reasonable prices. It has 13 very hi-tech manufacturing sites across Europe, the US and China. According to this contract, Novelis will provide cans at a price which is tapped, beyond which Novelis will incur the cost. One of the matters of concern for Novelis right now is the price that it is paying to have got into contracts with some major clients.

Speciality Consumer and Industrial f. These three institutions have underwritten the debt amount with UBS taking care of the majority portion. How does Novelis finance this transaction? Technicals Technical Chart Visualize Screener.

Hindalco’s Acquisition of Novelis|Business Strategy|Case Study|Case Studies

Watch the latest videos on YouTube. It has operations in four continents comprised of 34 operating facilities in 11 countries.

This will help Novelis in bringing down its cost of production, particularly at a time when metal prices, particularly aluminum are running strong, which in turn will help Novelis to improve upon its margins and it will get reflected in the balance sheets of both the companies.


The complementary expertise of both these companies will create and provide a strong platform for sustainable growth and ongoing success. Novelis is the world leader globally — the largest in every market that it is in. It is a widely held company and its shareholders are largely hedge funds and institutional investors. Novelis shareholders approved the transaction at a special meeting on May About Hindalco Based in Mumbai, India, Hindalco is one of the most cost-efficient aluminum producers globally.

Aleris will help derisk aluminium business: Kumar Mangalam Birla Vodafone-Idea merger: The Hindalco Novelis merger was ultimately completed on 1st June This will not only help Hindalco penetrate highly npvelis US and other western markets Novelis has operations in 11 countries but also help the shareholders to regain their investment Novelis is presently a loss making company.

The way to look at hindslco is to see other comparable transactions in the same sector. Both the companies involved in the merger action are present leaders in their respective markets; Hindalco in the low cost aluminum production and Novelis in the aluminum rolled products.

The deal inclusive of all debts was valued approximately at 6 billion US dollars. Impact of Merger and Acquisition.

Hindalco to acquire Novelis for $6 bn

Hostile and Friendly Takeover. Newer Post Older Post Home. Choose your reason below and click on the Report button. Acquisition of Terapia, Romania by Ranbaxy Laborat