Aditya Birla Group flagship Hindalco Industries on Wednesday completed its bid to own Utkal Alumina, a joint venture it had with Alcan, when it agreed to buy out the Canadian company’s 45% equity stake in the venture for an undisclosed amount. The acquisition of Utkal Alumina would give Hindalco ownership of 195 million tonnes of high grade bauxite, that is a key raw material for making aluminium metal.
Although Hindalco officials declined to specify the amount they will spend to buy out Alcan’s stake, it has been learnt that an alumina plant of 1.5 million tonnes capacity will cost Rs 5,000 crore to build. The acquisition of Utkal Alumina also gives the Birlas complete ownership of high grade alumina which could be used to feed the group’s forthcoming aluminium projects. Once all projects are completed, the group will have ownership of about 5.2 million tonnes of alumina.
Alcan, which is at present the target of a friendly $38-billion takeover offer from British mining major Rio Tinto, had in April announced its plan to exit the joint venture. Hindalco held the remaining 55% stake and the first right of refusal for its partner’s stake.
Read more in The Economic Times article.
Showing posts with label Utkal Alumina International. Show all posts
Showing posts with label Utkal Alumina International. Show all posts
Thursday, July 19, 2007
Wednesday, June 6, 2007
Alcan plans takeovers, joint ventures in India
Alcan Inc, fighting a takeover attempt by Alcoa, today said it intends to expand operations in India through acquisitions and joint ventures.
The announcement comes within a couple of months after Alcan decided to pull out of Utkal Alumina International, its joint venture with the Aditya Birla Group, by selling its 45% stake.
“You will be hearing about more acquisitions in the next two to three years,” said Steve Henning, director (strategy) at Alcan Composites. He was addressing a press conference to announce the acquisition of 76% stake in Alukbond India, maker and seller of agricultural facades, for an undisclosed amount. The company posted sales of $5 million last year.
He, however, didn’t give details of the proposed expansion plans in India. Analysts said the expansion plan of the Montreal-based aluminium maker would depend on the future ownership of the company which had recently rejected a $27.6 billion takeover bid from Alcoa.
Read more in The Business Standard article.
The announcement comes within a couple of months after Alcan decided to pull out of Utkal Alumina International, its joint venture with the Aditya Birla Group, by selling its 45% stake.
“You will be hearing about more acquisitions in the next two to three years,” said Steve Henning, director (strategy) at Alcan Composites. He was addressing a press conference to announce the acquisition of 76% stake in Alukbond India, maker and seller of agricultural facades, for an undisclosed amount. The company posted sales of $5 million last year.
He, however, didn’t give details of the proposed expansion plans in India. Analysts said the expansion plan of the Montreal-based aluminium maker would depend on the future ownership of the company which had recently rejected a $27.6 billion takeover bid from Alcoa.
Read more in The Business Standard article.
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