The European Commission decided on Tuesday 1st October to authorise the acquisition (merger) of Aleris by Novelis, on the condition that it sells Aleris' aluminium foil activities used in car bodywork in Europe.
The decision follows an in-depth investigation into the transaction, which combines Novelis, the world's largest producer of aluminium foil for car bodywork, and Aleris, a well-established supplier of the same product (see EUROPE 12221/16). Both companies are global manufacturers of flat rolled aluminium products and have a significant presence in the European Economic Area (EEA).
During the investigation, the Commission found that flat-rolled aluminium products fall within a separate market from other aluminium products. This means that the merged entity would have had very high market shares and would have controlled a very significant proportion of the production capacity for aluminium foil used in car bodywork in the EEA.
The Commission was therefore concerned that the operation would result in higher prices for European customers of these aluminium foils (bodywork). Thus, the parties have proposed to divest all of Aleris' aluminium foil activities used in car bodywork in Europe, including its production plant in Duffel (Belgium). The proposed divestiture eliminates the overlap created by the operation in the aluminium foil used in car bodywork in Europe. (Original version in French by Lionel Changeur)