Hindalco shines bright

Hindalco Industries spurted up almost 7% in the opening bell session to Rs.220.35 and remains firmly in the green.

There is good news from the aluminium giant. Its U.S. subsidiary Novelis has agreed to buy U.S.-based aluminium producer Aleris Corporation. This definitive deal is for around $2.6 billion of which there will be $775 million of equity and the $1.8 billion balance being debt that Aleris has on its balance sheet already. Novelis will fund the buyout via debt, fully financed in its books.

This big deal comes 12 years after its biggest buyout of Novellis for $6 billion.

Buying Aleris will give the company access to high-end aerospace and automotive segments through its 13 manufacturing facilities across North America, Asia and Europe.

Post the takeover, the combined entity of Novelis will have some 37 facilities, 16,500 employess and pro forma revenue of $15 billion. The transaction is expected to be completed in nine to 15 months.