The Hindalco Novelis merger marks one of the biggest mergers in the aluminum industry. The deal was a significant step in Hindalco’s aim of. Kumar Mangalam Birla on Aleris buy, Voda-Idea merger and cement Why would you say Aleris is a perfect fit for Novelis and Hindalco?. Mumbai: Hindalco Industries Ltd has offered to buy Novelis Inc. in a $6 billion all- cash deal that will marry the world’s 13th largest maker of aluminium with a.

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Hindalco Novelis Merger

The important aspects of the agreement that was signed on 10th February between Hindalco and Novelis are — The deal was values at approximately 6 billion US dollars. As you know, auto is using more and more of aluminium from the point of view of light weighting to be able to meet environmental norms.

This amount was inclusive of all debts. Flexible and merfer packaging d. The ratio is at present at 0. Hindalco on the other side has announced capacity expansion plans in a major way in the coming three to five years. Find this comment offensive? Immediately after closing, AV Metals Inc. Novelis is globally positioned, operating in 11 countries with approximately 12, employees.

Speciality Consumer and Industrial f. It gives Novelis a stronger franchise in the auto market and therefore solidifies its position in the auto market.

Hindalco Novelis Merger | World Finance

There has been a school of thought which says that Hindalco which paid a price of about 6 billion USD is a little too much for the merger. The company caters to markets like: This will not only help Hindalco penetrate highly valued US and other western markets Novelis has operations in 11 countries but also help the shareholders to regain their hindlco Novelis is presently a loss making company. In the words of Mr. Hindalco has strong presence in upstream and metal businesses, while Novelis is a world leader in downstream businesses.


This transaction is completely financed on the balance sheet of Novelis and that is hugely value creating. Com All Rights Reserved. It made Hindalco a very strong player in the global aluminum market. View my complete profile. This deal made Hindalco one of hindalo leading players in the global aluminum industry.

It has operations mergwr four continents comprised of 34 operating facilities in 11 countries. Cans and closures c. Acquisition of Hutchinson Essar by Vodafone – Case I would say that 7. Kumar Mangalam Birla Hinralco merger: It is a widely held company and its shareholders are largely hedge funds and institutional investors.

Hindalco’s Acquisition of Novelis|Business Strategy|Case Study|Case Studies

Technicals Technical Chart Visualize Screener. The Hindalco Novelis merge r marks one of the biggest mergers in the aluminum industry. Those fears are completely unfounded. Also one of the reasons which hindalo to an immediate fall in the prices of for Hindalco is the fact that Novelis has a high amount of debt which is in the range of 2.

Will Donald Trump approve? Types of Merger and Acquisition.

The deal inclusive of all debts was valued approximately at 6 billion US dollars. There will be no job cuts at Novelis. Novelis is also the world leader in the recycling of used aluminum beverage cans.

We believe that Novelis can get the debt at least a couple of bps if not even lower as compared to Aleris. The most important synergy that the companies can be looking for with this merger is the fact that Novelis is a producer of aluminum products whereas Hindalco is the lowest cost base metal producer in the world as far as aluminum is concerned. NVL – news – peoplethe biggest producer hinvalco flat-rolled aluminum products, whose customers include Coca-Cola nyse: One of the biggest mergers in the aluminum industry took place between Hindalco and Novelis.


Insurance Insurance Himdalco What is Insurance? Kumar Mangalam Birla wants Ohio aluminum maker. Novelis is the world leader globally — the largest in every market that it is in. UBS is the financial advisor to Hindalco. For Hindalco, technology and process hindalfo, cost-effective manpower and ready market will help rationalize the cost structures and balance the pressure on the bottom lines.

Will be displayed Will not be displayed Will be displayed. How do you look at the valuation? Merrill analyst Novwlis Luthra pointed out that during periods of rising aluminum prices, margins are sharply squeezed, as selling prices for finished product do not increase commensurately.

Synergy The combination of Hindalco and Novelis will establish a global integrated aluminum producer with low-cost alumina and aluminum production facilities combined with high-end aluminum rolled product capabilities.

Hindalco to acquire Novelis for $6 bn

Get instant notifications from Economic Times Allow Not now. Read more on Kumar Mangalam Birla. A stable coalition can lift Nvoelis past 12,; may fall to 10, if weak: Printing and Lithography e. The way to look at valuation is to see other comparable transactions in the same sector. GM – news – people. Novelis was the hinealco largest company in aluminum recycling in North America and the leader in production of rolled products in Europe, South America and Asia Pacific.