HINDALCO NOVELIS MERGER PDF

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.

Author: Kazrakazahn Kajilkree
Country: Fiji
Language: English (Spanish)
Genre: Career
Published (Last): 8 April 2006
Pages: 288
PDF File Size: 10.83 Mb
ePub File Size: 6.66 Mb
ISBN: 466-1-71675-954-2
Downloads: 76951
Price: Free* [*Free Regsitration Required]
Uploader: Faulmaran

Acquisition of Terapia, Romania by Ranbaxy Laborat Here economies of scale are to make a big impact on the extend of success of the merger.

This will help Novelis in bringing down its cost of production, hindalo at a time when metal prices, particularly aluminum are running strong, which in turn will help Novelis to improve upon its margins and it will get reflected in the balance sheets of both the companies. 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 Hindalcco.

With Hindalco’s own cheap supplies of bauxite and coal, the purchase of a downstream producer like Novelis, which was spun off from Alcan hindalcp The biggest benefit to Hindalco, however, was the access to the most sophisticated and advanced technology in the industry that Novelis had at its disposal.

The company operates in 11 countries, has 36 operating units and 12, employees. The most important synergy that the companies can be looking for with this merger is the fact that Novelis is a producer noevlis aluminum products whereas Hindalco is the lowest cost base metal producer in the world as far as aluminum is concerned.

Hindalco to acquire Novelis for $6 bn

The major risk that can be associated as of now for both companies are the post-merger integration issues for the two companies. Novelis is globally positioned, operating in 11 countries with approximately 12, employees.

This will not only help Hindalco penetrate highly valued US and other western markets Novelis has operations in 11 countries but also help the shareholders to regain their investment Novelis is presently a loss making nove,is.

  COUMARIN FROM APIACEAE PDF

Acquisition of Hutchinson Essar by Vodafone – Case NVL – news – peoplethe biggest producer of flat-rolled aluminum products, whose customers include Coca-Cola nyse: Get instant notifications from Economic Times Allow Not now. The deal inclusive of all debts was valued approximately at 6 billion US dollars.

Novelis is also the world leader in the recycling of used aluminum beverage cans. The Company has taken two major initiatives in this direction in the recent past.

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

Your Reason has been Reported to the admin. One of the biggest mergers in the aluminum industry took place between Hindalco and Novelis. Speciality Consumer and Industrial f. The deal will lead to the debt-equity ratio of Hindalco going up.

For Hindalco to build hindalcoo a big market presence as that of Novelis by its own would had taken a very long time, which is the reason why this would be a mergee advantageous move for Hindalco as far as company strategy is concerned. Reasons Behind Merger and Acquisition. AL – news – people after its former U. One of the major benefits that accrued to Hindalco from this merger was the increase in its global presence.

This will alert our moderators to take action Name Reason for reporting: Both the companies involved in the merger action are present leaders in their respective markets; Hindalco in the low cost aluminum production and Novelis in the aluminum rolled products.

It is all of the balance sheet of Novelis which is the point to underline. I do not think there is any change in track there. Highlights Aleris gives Novelis access to new sectors like building and construction, aerospace other than auto Hindalco plays no role at all in the financing for this transaction.

This will alert our moderators to take action. Fill in your details: Please contact for further details. Choose your reason below and click on the Report button.

Will be displayed Will not be displayed Will be displayed. There has been a school of thought which says that Hindalco which paid a price of about 6 billion USD is a little too much for the merger. About Hindalco Based in Mumbai, India, Hindalco is one of the most cost-efficient aluminum producers globally.

  5J22 SEIKO PDF

As you know, auto is using more and more of aluminium from the point of view of light weighting to be able to meet environmental norms.

BUD – news – people and General Motors nyse: This was one of the reasons for the poor performance of Hindalco stocks after the merger took place. We believe that Novelis can get the debt at least a couple of bps if not even lower as compared to Aleris.

Watch the latest videos on YouTube. Hostile and Friendly Takeover. Aleris is in the same space as Novelis which is aluminium controlled products.

So there is a possibility that the performance of the two companies may be completely opposite to each other. GM – news – people.

Aleris acquisition makes Hindalco largest aluminium company in world: Kumar Mangalam Birla

History of Merger and Acquisition. I would say that 7. The balance is debt of Aleris that Novelis will take over and the idea is to at some point soon after the takeover, refinance that debt.

With the takeover, Hindalco now has these glories to itself.

Hindalco Novelis Merger | World Finance

The way to look at valuation is to see other comparable transactions in the same sector. Aleris will help derisk aluminium business: The Hindalco Novelis merge r marks one of the biggest mergers in the aluminum industry.

Novelis shareholders approved the transaction at a special meeting on Nvoelis What is important is that as a whole Hindalco is becoming a larger value-added player in terms of its proportion of portfolio. A strategy lies behind the proposed merger between India’s largest aluminum producer, Hindalco Industries, and Canada’s Novelis nyse: