Brussels, 10/05/2007 (Agence Europe) - On Tuesday 8 May, the European Commission approved the proposed acquisition of the US based aluminium company Novelis by Hindalco. Hindalco is Asia's largest integrated aluminium producer and is also active in the copper industry in Asia. However, it has no aluminium production facilities outside of India. Novelis is active in the aluminium sector, both at the upstream level in the production of alumina, primary aluminium and in particular in beverage can recycling for the production of secondary aluminium, and at the downstream level, mainly in the manufacture of aluminium flat rolled products.
The main markets concerned by the transaction are the production of flat rolled aluminium products and, to a lesser extent, some downstream products for aluminium packaging. The Commission's investigation showed that Hindalco's European activities are very limited and, where the parties' activities overlap, their combined market position would not give rise to competition concerns given the presence of alternative suppliers able to constrain the parties' behaviour. (cd)