Hindalco shares zoom 9 pc after Aleris deal

Shares of Hindalco on Wednesday advanced nearly 9 per cent after the USD 2.8 billion acquisition of Aleris by its wholly-owned US subsidiary Novelis Inc.

The scrip jumped 8.91 per cent to Rs 123.95 on the BSE.

On the NSE, it climbed 8.96 per cent to Rs 124.

The Aditya Birla Group flagship company has further cemented its position as the world's largest producer of value-added aluminium products with the completion of the USD 2.8 billion acquisition of Aleris by its wholly-owned US subsidiary Novelis Inc.

The acquisition of the US-based rolled products major Aleris Corporation positions Hindalco as one of the world's largest aluminium companies, with a global footprint spanning 49 manufacturing facilities in North America, Europe and Asia, the group said in a statement.

The deal, closed at an enterprise value of USD 2.8 billion, offers Hindalco potential synergy benefits of USD 150 million on a recurring basis and also marks Novelis' entry into the high-end aerospace segment.

It also offers Hindalco a large foothold into the Chinese fully-integrated metal value-chain as Aleris runs a facility in Zhenjiang.

Satish Pai, the managing director of Hindalco, said beyond the many strategic benefits, the deal will generate around USD 150 million in synergies and creates a strong financial profile.