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US: DOJ sues to stop Novelis purchase of Aleris

By  |  September 4, 2019

The US Justice Department on Wednesday filed a lawsuit aimed at stopping Novelis Inc’s proposed $2.6 billion purchase of Aleris Corp because of concern over higher prices for aluminum sheet used to make cars.

The department said in a statement that the deal would combine two of the four major North American producers of aluminum to make automobile bodies. The department described Ohio-based Aleris as an “aggressive competitor” and said the deal would give Novelis up to 60% of projected domestic capacity.

Novelis, which is U.S.-based but owned by India’s Hindalco Industries, said in a statement that it remained determined to close the deal by Jan. 21, the outside date for the merger agreement.

Full Content: Reuters

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