Confident On Timely Completion Of Novelis-Aleris Deal, Says Hindalco
This comes even as European Commission suspended the deadline to clear the deal.
Hindalco Industries Ltd. said it expects the acquisition of Aleris Corporation through its U.S.-based subsidiary Novelis Inc. to be complete by the second quarter of the ongoing financial year.
This comes even as European Commission suspended the deadline to clear the deal, similar to what happened at the start of the now-collapsed Tata Steel Ltd.-Thyssenkrupp AG joint venture.
“In the worst-case scenario, if the deal doesn’t go through due to lack of approval from China, Hindalco expects a breakup fee to the tune of $25 million,” the company’s Managing Director Satish Pai said, adding that the aluminium producer expects a fee of $125 million in the absence of approvals from the U.S. and European authorities.
FY20 Outlook
While Hindalco expects London Metal Exchange aluminium prices to go up to $2,000 per tonne from $1,800-$1,850 per tonne, it doesn’t expect any higher growth in operational performance of its aluminium division which is currently at historic highs.
Pai, however, expects the copper division’s Ebitda to register growth in financial year 2019-20 compared 4 percent decline in the previous year to due to lower transfer charges and refining charges.
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