HINDALCO NOVELIS MERGER PDF

The Hindalco Novelis merger marks one of the biggest mergers in the aluminum industry. The deal was a significant step in Hindalco’s aim of. Kumar Mangalam Birla on Aleris buy, Voda-Idea merger and cement Why would you say Aleris is a perfect fit for Novelis and Hindalco?. Mumbai: Hindalco Industries Ltd has offered to buy Novelis Inc. in a $6 billion all- cash deal that will marry the world’s 13th largest maker of aluminium with a.

Hindalco’s Acquisition of Novelis|Business Strategy|Case Study|Case Studies

Printing and Lithography e. According to this contract, Novelis will provide cans at a price which is tapped, beyond which Novelis will incur the cost. Merrill hndalco Vandana Luthra pointed out that during periods of rising aluminum prices, margins are sharply squeezed, as selling prices for finished product do not increase commensurately. Watch the latest videos on YouTube. My Saved Meeger Sign in Sign up.

For Hindalco to build such a big market presence as that of Novelis by its own would had taken a very long time, which is the reason why this would be a very advantageous move for Hindalco as far as company strategy is concerned. What is important is that as a whole Hindalco is becoming a larger value-added player in terms of its proportion of portfolio. Building and construction b. Also in the backdrop of increasing prices of Aluminum, Hindalco will gain but Novelis will be at a loss considering the contracts with the clause of tapped prices for supplying aluminum cans is concerned.

Kumar Mangalam Birla steers talks to bring home Aleris. It has 13 very hi-tech manufacturing sites across Europe, the US and China. Will be displayed Will not be displayed Will be displayed.

With the takeover, Hindalco now has these glories to itself. Reasons Behind Merger and Acquisition. One of the matters of concern for Novelis right now is the price that it is paying to have got into contracts with some major clients. The deal inclusive of all debts was valued approximately at 6 billion US dollars. Each share of Novelis was valued at The milestones reached by Hindalco through this deal were — Hindalco became the largest aluminum rolling company in the world.

How do you look at the valuation? The way to look at valuation is novells see other comparable transactions in the same sector.

Inthe company acquired a This will not only help Hindalco penetrate highly valued US and other western markets Merfer has operations in 11 countries but also help the shareholders to regain their investment Novelis is presently a loss making company.

Aleris acquisition makes Hindalco largest aluminium company in world: Kumar Mangalam Birla

About Novelis Novelis is the world leader in aluminum rolling, producing an estimated 19 percent of the world’s flat-rolled aluminum products. How does Novelis jerger this transaction? The most important synergy that the companies can be looking for with this merger is the fact that Novelis is a producer of aluminum products whereas Hindalco is the lowest cost base metal producer in the world as far as aluminum is concerned.

NVL – news – peoplethe biggest producer of flat-rolled aluminum products, whose customers include Coca-Cola nyse: Noveliw will help Novelis in bringing down its cost of production, particularly at a time when metal prices, particularly aluminum are running strong, which in turn will help Novelis to improve upon its nlvelis and it will get reflected in the balance sheets of both the companies.

These three institutions have underwritten the debt amount with UBS taking care of the majority portion. This will alert our moderators to take action. GM – news – people. For instance, price ceilings on beverage cans in the U. The important aspects of the agreement that was signed on 10th February between Hindalco and Novelis are — The deal was values at approximately 6 billion US dollars. Difference between Merger and Acquisition. UBS is the financial advisor to Hindalco.

The counterview to the argument that deal being over-priced is hinadlco Hindalco is getting a ready-made market, ready-made customers, ready product profile and its size has also tripled by the merger. A stable mergdr can lift Nifty past 12,; may fall to 10, if weak: Valuation in Merger and Acquisition.

Benefits of Merger and Acquisition. Along with this, if the aluminum prices go down in the coming months, it would add to the profitability of the group companies. Kamlesh Rao, Kotak Securities. The company caters to markets like: Why would you say Aleris is a perfect fit for Novelis and Hindalco?

Impact of Merger and Acquisition. The risk associated in the merger of these two entities is perceived to be a little higher on account of noveelis sheer size of the two companies. History of Merger and Acquisition. Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings.

Very interestingly, the high margin aerospace sector with customers like Bombardier, Boeing — all marquee names — come along with the transaction. From the performance reports, hinsalco was mergger that Novelis had incurred huge losses which will tend to decrease as most of its contracts with tapped prices will get over by the end of It gives Novelis a stronger franchise in the auto market and therefore solidifies its position in the auto market.

Flexible and semi-rigid packaging d. I would say that 7.

Both the companies involved in the merger action are present leaders jerger their respective markets; Hindalco in the low cost aluminum production and Novelis in the aluminum rolled products. In the words of Mr. Acquisition of Terapia, Romania by Ranbaxy Laborat We believe that Novelis can get the debt at least a couple of bps if not even lower as compared to Aleris. A key tenet of Hindalco’s strategy is continuous growth. BUD – news – people and Hindalxo Motors nyse: