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Hindalco’s wholly owned subsidiary, Novelis Inc, today announced the signing of a definitive agreement to purchase Aleris Corporation. Indian aluminium giant Hindalco acquired Atlanta-based company Novelis, . headquartered at Atlanta, Georgia, was formed as a Canadian corporation to. Hindalco ties up finance for $6-b Novelis buyout MUMBAI: Having entered the final lap in its acquisition of Atlanta-based Novelis, the Aditya Birla group has tied The LBO financing will use Canada-based SPV, while the.

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This gives the company more time to decide on a long-term structure.

Hindalco to acquire Novelis for $6 bn – Livemint

Canaada click on the button below, and select the case from the list of available cases: Cities were renamed, liberals were shouted down and vegans found their voice.

Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings. Need a monitoring mechanism to ensure prompt use of funds under DMF: Parliamentary panel to Mines Ministry.

Birla said Novalis was an efficient company which would not suffer hhindalco cuts after the acquisition and attributed its losses entirely to the contracts it had signed in the past. To see your saved stories, click on link hightlighted in bold. Never miss a great news story!

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Are you a Business Owner? It is not intended to illustrate either effective or ineffective handling of a management situation. The loan is being syndicated down to a host of other foreign and Indian banks also.


Parliamentary panel to Mines Ministry. You can change your cookie settings at any time but parts of our site will not function correctly without them. The Case Centre is dedicated to advancing the case method worldwide, sharing knowledge, wisdom and experience to inspire and transform business education across the globe. What a year has been!

Typically, a bridge loan is a short-term loan that is used until a company secures a long-term financing and allows companies to meet its current obligations. Hindalco is India’s largest metal company with interests in aluminium and copper.

A formal announcement is expected later today.

Meanwhile, Hindalco executives said that the shareholder approval obtained on May 10 would pave way for the Aditya Birla group company to make it into the Fortune list. The Birlas now have to get the final court approval under the Canadian law before Novelis comes under the Indian fold.

The teaching note includes the abstract, teaching objectives and target audience, teaching approach, assignment questions, feedback of case discussion, references and suggested readings.

Hindalco ties up finance for $6-b Novelis buyout

Additional reporting by Janaki Krishnan. At a special meeting on May 10, about Fill in your details: Gold extended its rally for the second consecutive week.

It will become one of the top five integrated aluminium players globally who are present in the entire value chain from acqjired bauxite and aluminia to making metal aluminium and further downstream into custom-made aluminium products through Novelis. This case study was compiled from published sources, and is intended to be used as a basis for class discussion.


The case explains the acquisition deal in detail and highlights the benefits of the deal for both the companies. The case concludes by describing xanada challenges that Hindalco would face in integrating the operations of Novelis and analysing if the deal was overvalued as opined by some industry experts.

UPDATE 1-India’s Hindalco to acquire Canada’s Novelis

Case Study Volumes Collection. Choose your reason below and click on the Report button. The deal values Novelis at eight times its operating profit.

Earlier, Hindalco MD Debu Bhattacharya had said that the move to acquire Novelis was to derisk since a focus on upstream business alone exposed the company to price fluctuations. The stock surged 3.

UPDATE 1-India’s Hindalco to acquire Canada’s Novelis | Reuters

This article is closed for comments. Basee company is also expected to pay off the bridge loan with a rights issue. New year will see omni-channel gain traction while deep discounting loses Move to prevent liquidation of premium clothing firm with no investor Will be displayed Will not be displayed Will be displayed. The New Year heralds an election season marked by yearning, anger, uncertainty — and above all, hope.

BO said on Sunday it had agreed to acquire Novelis Inc. Buy With PayPal Amount to be paid: This will alert our moderators to take action Name Reason for reporting: