A PYMNTS Company

EU: Novelis will not offer concessions despite concerns

By  |  July 7, 2019
According to a report from Reuters, US aluminum producer Novelis has no plans for now to offer concessions despite EU antitrust objections over its $2.6 billion buy of processor Aleris. 

Novelis, a US unit of India’s Hindalco Industries announced a bid for Aleris in July last year to gain a foothold in supplying the aerospace industry and other value-added businesses globally.

One of the world’s biggest suppliers of aluminum sheets for beverage cans and car parts, Novelis is making its biggest acquisition as part of its diversification into premium markets.

EU antitrust regulators on Monday sent a charge sheet known as a statement of objections to the companies, setting out their concerns, particularly on the impact of the deal on carmakers, the sources. The companies have two weeks to respond.

The European Commission opened an investigation into the deal in March, worried that the deal may reduce competition in the supply of various semi-finished aluminum products, reduced choice in suppliers and higher prices for aluminum car body sheets.

Full Content: Reuters

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.