Hindalco Industries rose 2.86% to Rs 184.95 after the media reports suggested that the company-owned Novelis was set to secure European Union (EU) antitrust approval for its $2.6-billion bid for Aleris.
Novelis, a US-based subsidiary of Hindalco Industries, has agreed to sell Aleris' Belgian plant to address European Commission worries that the deal may reduce competition and lead to higher prices, hitting carmakers in particular. The Commission is scheduled to decide on the case by 7 October 2019.
Novelis had announced in July 2018 that it has signed a definitive agreement to acquire Aleris Corporation, a global supplier of rolled aluminium products, for approximately $2.6 billion including the assumption of debt.
Novelis reportedly aims to diversify into the aerospace, automotive, beverage can and construction industries. The company had offered to increase capacity and add more jobs at Aleris' Duffel plant in order to ease the regulators' concerns. The commission has asked the company offer a far-reaching package of concessions, the reports added.
On the BSE, 2.56 lakh shares were traded in the counter so far compared with average daily volumes of 3.71 lakh shares in the past two weeks. The stock hit a high of Rs 187.05 and a low of Rs 181.5 so far during the day.
The stock hit a 52-week high of Rs 259.7 on 04 Oct 2018. The stock hit a 52-week low of Rs 171.25 on 26 Aug 2019.
The scrip has underperformed the market in past one year, down 24.14% as against Sensex's 4.27% fall.
On a consolidated basis, Hindalco's net profit fell 26.91% to Rs 1,077.83 crore on a 3.56% decline in the net sales to Rs 29,972.13 crore in Q1 June 2019 over Q1 June 2018.
Hindalco Industries, an Indian aluminium and copper manufacturing company, is a subsidiary of the Aditya Birla Group. It is the flagship company of the company in the metals business.
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