Mumbai July 26 (IANS) Aluminium rolling company Hindalco on Thursday said that its wholly owned subsidiary Novelis Inc has entered into an agreement to purchase Aleris Corporation for $2.58 billion in a debt finance deal.
Aleris is a global aluminium rolled products major headquartered in the United States. The acquisition is subject to customary closing conditions and regulatory approvals.
"The acquisition of Aleris is the next phase of our aluminium value added products growth strategy " Hindalco Chairman Kumar Mangalam Birla was quoted as saying in a statement.
"This will solidify our position as the world s No.1 aluminium Value-Added Products player. Post this acquisition we are well placed to serve our customers across geographies in automotive and now the high-end aerospace segments."
As per the statement at a market segment level the acquisition would enhance Hindalco s competitive position in the Building and Construction (B&C) segment.
Moreover Aleris has a wide base of manufacturing locations.
"This not only deepens the combined entity s presence in developed markets like the US and Europe but it also positions Novelis well in the emerging markets of Asia " the statement said.
"Aleris has invested approximately US$ 900 million in the last few years in the automotive and aerospace businesses. The ramp-up of these capacities in the near-term will significantly bolster Novelis growth across regions and market segments. As a result Novelis will have a further diversified business portfolio across regions segments and customers."

--IANS rv/bg