China’s State Administration for Market Regulation (SAMR) has approved Novelis’ proposed acquisition of Aleris Corporation. As part of the agreement, the global aluminum rolling and recycling company will sell the Aleris plant in Duffel, Belgium to an independent third-party.
The approval from SAMR will allow the joint entity to enhance its strategic position in Asia and diversify its product portfolio according to Steve Fisher, president and chief executive officer, Novelis.
The transaction is aimed at improving Novelis’ competitiveness in the automotive market and to meet the growing demand for aluminum. The company also plans to achieve its recycling and sustainability goals through its acquisition of Aleris.
Novelis has already received conditional approval from the European Union for the acquisition and is expecting the US approval in time to close the transaction for the merger between the two companies by January 21, 2020.