Hindalco drops plan to buy US' AluChem over extended delays

Mumbai: Hindalco Industries said on Friday it has abandoned the proposed acquisition of US-based speciality alumina producer AluChem Companies Inc due to prolonged delays in closing the deal.

The Aditya Birla Group company had announced in June last year its plan to acquire the company for $125 million. The delays, which led to the deal getting cancelled, were beyond the control of either party, the global aluminium maker said.

"Hindalco's broader strategy of scaling high-value, technology led value-added products (VAP) in its speciality alumina business remains unchanged, and the company will continue to evaluate opportunities, including in the United States, consistent with this strategy," the company said in an exchange filing.


Hindalco aims to fetch 30-40% of total earnings before interest, tax, depreciation and amortisation (Ebitda) from downstream operations in the next three to four years, chief executive officer Satish Pai said last year.

US-based Novelis Inc, the world's largest recycler of aluminium, is a subsidiary of Hindalco. The company is also investing $5 billion to build an integrated aluminium plant at Bay Minette in the US.