Major aluminium recycler and aluminium rolling business Novelis has bought global supplier of rolled aluminium products Aleris Corporation.
A purchase price of $2.8 billion (£2.23 billion) was agreed between the two multi-national businesses.
Aleris has 13 plants across North America, Europe and Asia, but due to regulatory requirements Novelis will need to divest Aleris’ plants in Lewisport, Kentucky, USA and Duffel, Belgium.
However, the acquisition will mean that Novelis now has the capability to integrate complementary assets in Asia in recycling, casting, rolling and finishing capabilities.
Aditya Birla Group and Novelis chairman Kumar Mangalam Birla said: “The Aleris deals marks a major milestone for Novelis, on its path to global leadership.
“The closure of this deal, amid challenging market conditions, reflects our conviction in the Aleris business and its value to our metals portfolio.
“Periods of turmoil have historically seen the emergence of champions, powered by quality leadership and sound business fundamentals.
“This is a long-term strategic bet, much like Novelis was in 2007. The Aleris deal crucially enables the further diversification of our metals portfolio into other premium market segments, most notably aerospace.
“Through the creation of an industry champion, we are reinforcing our commitment to our customers, employees and shareholders. At the same time, with this further expansion in our aluminium portfolio, we have taken a decisive step towards a more sustainable future.”