Novelis, Aleris merger snags: Correction

Corrects company information in second paragraph

Atlanta-based aluminum rolling mill Novelis will not be able to complete the acquisition of competitor Aleris by its 21 January target because of regulatory hang-ups it still needs to iron out.

EU authorities are still reviewing Aleris' divestment of its Duffel, Belgium, rolling mill to UK-based conglomerate Liberty House Group, causing the delay, Novelis told Argus today.

The Duffel rolling mill sale was mandated to satisfy antitrust requirements to complete the Aleris acquisition. At the same time, Liberty already owns several other metals businesses in Europe, including aluminum smelters in the UK and France.

Novelis agreed in July 2018 to acquire Aleris for approximately $2.6bn including debt, but has faced antitrust challenges from Chinese, European and US regulators along the way.

Chinese regulators approved the merger in December, but the US remains engaged in arbitration talks with Novelis and Aleris about the antitrust concerns.

By John Betz