Novelis, the aluminium roller and recycler, said it had sold the former Aleris plant in Duffel, Belgium to Alvance, the international aluminium business of the GFG Alliance.
Previously, the European Commission and Chinese State Administration for Market Regulation determined that Novelis’ acquisition of Aleris, which closed earlier this year, could proceed on the condition that Novelis divest the Duffel plant to a third party that met certain buyer suitability requirements. Both regulators have now approved Alvance as a suitable buyer and have permitted the sale to be completed.
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In November 2019, Alvance agreed to acquire the Duffel facility for EUR310m. At closing on 30 September, 2020, Novelis received EUR210m in cash. The parties have agreed to a post-closing arbitration process regarding the payment of the remaining EUR100m.
The Aleris acquisition provides a strong pro-forma financial profile for Novelis with many strategic benefits and continues to be value accretive, with the long term outlook in line with the original acquisition case.
