Novelis-Aleris Merger Deal Receives Chinese Antitrust Authority Nod

The SAMR approval has given hopes of a possible closure of the transaction by January 21, 2020, the outside date under the merger agreement.

SEATTLE (Scrap Monster): The Chinese antitrust regulator has given approval for the proposed acquisition of Aleris Corporation by the Atlanta-based aluminium major Novelis Inc. The China’s State Administration for Market Regulation (SAMR) approved last week the $2.6 billion acquisition deal. The approval is conditional upon sale of Aleris Duffel, Belgium plant by Novelis to an independent third party buyer.

The SAMR approval has given hopes of a possible closure of the transaction by January 21, 2020, the outside date under the merger agreement. Novelis is confident of approval of the deal by the U.S. authorities. Also, it has already received a conditional approval from the European Union.

Steve Fisher, President and CEO, Novelis Inc. commented that the SAMR approval is a significant step forward in uniting the two world-class manufacturing companies. Furthermore, it will help the company to enhance its strategic position in the Asian region and diversify its overall product portfolio, he added.

ALSO READ: Novelis Commits to Complete Aleris Acquisition, Despite DOJ Lawsuit

The proposed Aleris acquisition is expected to help Novelis to further consolidate its ability to compete against steel in the automotive market and meet the increasing demand for aluminium from customers. In addition, it is also expected to help the company achieve its recycling goals and sustainability objectives.

Aleris, currently owned by private equity funds Oaktree Capital Group LLC and Apollo Global Management LLC, owns 13 facilities spread across North America, Europe and China.

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