Hindalco Industries Ltd. unit Novelis Inc. will have to offer concessions to EU competition authorities by Aug. 9 to secure approval for its US$2.6 billion takeover of Aleris Corp., Reuters reported Aug. 2, citing sources close to the matter.
Novelis bid for Aleris in July 2018 as part of an initiative to diversify into industries such as aerospace, automotive and construction. The European Commission is scheduled to decide on the case by Sept. 16.
The European Commission carried out a four-month investigation of the deal ahead of outlining competition concerns earlier this month.
Novelis and Aleris defended the proposed acquisition at a hearing last week, aiming to address competition concerns and secure unconditional approval. The hearing was also attended by trade unions from Belgium and Germany in support of the deal.
Novelis is willing to increase capacity and add 80 new jobs at the Aleris plant in Belgium to ease regulatory concerns that it may cut capacity to increase prices, according to one of the sources.
Novelis has said the deal will not increase prices as there is competition from other aluminum and steel producers in addition to customers' inclination to shift to rivals, according to the report.