Hindalco Industries Ltd. unit, aluminum producer Novelis Inc., said Oct. 1 that the European Commission conditionally approved its proposed US$2.6 billion takeover of aluminum manufacturer Aleris Corp.
As previously reported by Reuters, the approval is subject to the sale of Aleris' aluminum plant in Duffel, Belgium. Novelis said it is now pitching the plant to potential buyers.
The commission had reportedly flagged potential competition concerns, especially those impacting carmakers. But the company had argued that the takeover will not increase prices as there is enough competition from other producers.
To appease the regulators, Novelis reportedly offered to increase capacity at the Duffel plant.
Novelis still needs to secure approval from U.S. and Chinese authorities. In September, the U.S. Justice Department filed an injunction against the deal due to competition concerns, although Novelis expressed confidence that it will not prevent the deal from closing by Jan. 21, 2020.
