The battle for Hindalco Industries took a new turn in June with media reports citing a plan by Canadian firm Alcan and India’s Sterlite Industries to offer a joint takeover bid for the aluminium maker.
The Times of India reported in early June that an agreement with Sterlite could help Alcan fend off a takeover bid from its US rival Alcoa. Alcan received a US$28 billion hostile bid approach from Alcoa in May in a deal that could create the world’s largest aluminium producer.
Hindalco recently completed a takeover of aluminium rolling and recycling company Novelis, an Alcan spin-off.
Atlanta-based Novelis was sold to Hindalco for about US$6 billion in the largest acquisition to date by an Indian company of a US company. The takeover took place after European Union regulators in May approved Hindalco’s bid for Novelis after finding the deal would not stifle competition in Europe.
King & Spaulding, based in Atlanta, served as lead counsel to Novelis while Blackwell Sanders served as due diligence counsel for the transaction.
The adviser to Hindalco on the takeover was Torys, a Canadian law firm.
If a joint Alcan and Sterlite bid is accepted, Alcan and Novelis could reunite.
Meanwhile, the Hindustan Times reported in June that Hindalco and Sterlite’s parent company were discussing possible bids for Alcan.
