Hindalco Industries rose 3.66% to Rs 214.10 at 11:58 IST on BSE after the company said its US subsidiary Novelis agreed to buy US-based aluminium producer Aleris Corporation.
The announcement was made after market hours yesterday, 26 July 2018.Meanwhile, the S&P BSE Sensex was up 276.45 points, or 0.75% to 37,261.09.
On the BSE, 9.11 lakh shares were traded in the counter so far compared with average daily volumes of 9.09 lakh shares in the past two weeks. The stock had hit a high of Rs 220.35 and a low of Rs 207.45 so far during the day. The stock hit a record high of Rs 283.95 on 5 January 2018. The stock hit a 52-week low of Rs 192.50 on 23 July 2018.
Hindalco Industries announced that its wholly-owned subsidiary, Novelis Inc, announced signing of a definitive agreement to purchase Aleris Corporation, a global aluminium rolled products major, headquartered in the United States, for $2.58 billion in a debt finance deal.
Aleris is a privately held company and is amongst the leading producers in aluminium rolled products globally. Headquartered in Cleveland, Ohio, Aleris operates 13 production facilities in North America, Europe and Asia.
At a market segment level, the acquisition enriches the portfolio with the fast growing automotive segment and entry into the high-end technology driven aerospace segment. Moreover, access to the continuous-cast capabilities would enhance Hindalco's competitive position in the Building and Construction (B&C) segment. From a footprint perspective, 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. As a result, Novelis will have a further diversified business portfolio across regions, segments and customers.
The acquisition adds to Hindalco's ability to bring in the latest capabilities in aluminium value added products to India. Proforma consolidated revenues will be at approximately $21 billion with an employee base of around 40,000, the company said in a statement.
Net profit of Hindalco Industries declined 24.98% to Rs 376.97 crore on 5.94% rise in net sales to Rs 11681.10 crore in Q4 March 2018 over Q4 March 2017.
Hindalco Industries, the metals flagship company of the Aditya Birla Group, is a leading player in aluminium and copper manufacturing. It is the world's largest aluminium rolling company and one of Asia's biggest producers of primary aluminium.
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