Aditya Birla Group chairman Kumar Mangalam Birla on Thursday said that Ohio-based aluminium maker Aleris International is the next step in the Novelis story as it’s a cost accretive asset.

Novelis, the US-based downstream arm of India’s largest aluminium producer Hindalco Industries, will acquire Aleris’ 13 manufacturing facilities in North America, Asia and Europe for an enterprise value of $2.58 billion, of which $775 million in equity and balance $1.8 billion as debt.

The deal will lead to the creation of second largest aluminium company in the world with $21 billion revenue, and 40,000 employee.

In an exclusive interview to CNBC-TV18, Birla said that Aleris was an attractive transaction for Aditya Birla Group and Novelis is a prized asset in every way.

The acquisition of Aleris will give Novelis a foray into some new segments where margins are very high, Birla said.

Aleris is a global supplier of aerospace and automotive aluminium rolled products.

According to him, the deal enhances Asian play for Novelis, which will give the value added product portfolio for the company.

First Published:Jul 26, 2018 10:32 PM IST