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

Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings. Hindalco will take a call on joining the board later. Here economies of scale are to make a big impact on the extend of success of the merger. Difference between Merger and Acquisition. Highlights Aleris gives Novelis access to new sectors like building and construction, aerospace other than auto Novflis plays no role at all in the financing for this transaction.

For instance, price ceilings on beverage cans in the U. Very interestingly, the high margin aerospace sector with customers like Bombardier, Boeing — all marquee names — come along with the transaction.

Along with this, if the aluminum prices go down merfer the coming months, it would add to the profitability of the group companies. Annually, we recycle more than 35 billion used beverage cans — enough to circle the earth more than times.


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So there is a possibility that the performance of the two companies may be completely opposite to each other. Inthe company acquired a It is a widely held company and its shareholders msrger largely hedge funds and institutional investors. Merrill analyst Vandana Luthra pointed out that during periods of rising aluminum prices, margins are sharply squeezed, as selling prices for finished product do not increase commensurately.

KVSSNRao’s Handbook of Mergers and Acquisitions: Acquisition of Novelis by HIndalco – Case Study

It also gives it foray into some new sectors like building and construction. Why would you say Aleris is a perfect fit for Novelis and Hindalco?

With industry-leading assets and technology, we produce the highest-quality aluminum sheet and foil products for customers in high-value markets including automotive, transportation, packaging, construction and hinxalco. One of the major benefits that accrued to Hindalco from this merger was the increase in its global presence. NIFTY 50 10, Novelis was the second largest company in aluminum recycling in North America and the leader in production of rolled products in Europe, South America and Asia Pacific.

GM – news – people. I do not think there is any change in track there.

Never miss a great news story! Hindalco has strong presence in upstream and metal businesses, while Novelis is noveliz world leader in downstream businesses. About Hindalco Based in Mumbai, India, Hindalco is one of the most cost-efficient aluminum producers globally. Printing and Lithography e. This was one of the reasons for the poor performance of Hindalco stocks after the merger took place. Newer Post Older Post Home.


My Saved Articles Sign in Sign up. The counterview to the argument that deal being over-priced is that Hindalco is getting a ready-made market, ready-made customers, ready product profile and its size has also tripled by the merger.

The company caters to markets like: Those fears are completely unfounded. This deal was passed by a Choose your reason below and click on the Nogelis button.

Hindalco’s Acquisition of Novelis

Kumar Mangalam Birla Vodafone-Idea merger: Novelis will operate as a subsidiary of novrlis Company. Novelis is also the world leader in the recycling of used aluminum beverage cans. How do you look at the valuation? History of Merger and Acquisition. Each share of Novelis was valued at The company operates in 11 countries, has 36 operating units and 12, employees.

NVL – news – peoplethe biggest producer of flat-rolled aluminum products, whose customers include Coca-Cola nyse: Building and construction b.