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European Commission undermines Novelis’ acquisition of Aleris

11 April 2019

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11 April 2019

European Commission undermines Novelis’ acquisition of Aleris

Report summary

The European Commission announced on 25 March that it has launched an in-depth investigation into Novelis’ US$2.58 billion purchase of Aleris. The deal to buy Aleris was announced in July 2018 and a preliminary market investigation by the European Commission ensued. The initial probe raised significant enough concerns over reduced customer choice to warrant a more detailed investigation into the proposed merger. The outcome from the investigation will have an important impact not only on Novelis’ automotive sector growth strategy, but also on any further consolidation in the aluminium rolling industry.

The deal logic: When big is beautiful
- Focus on automotive sector and scrap management...
- ...and diversification of end-use markets
What concerns the European Commission?
The fallout from the investigation