Novelis Inc. has received approval from Chinese regulators for a $2.6 billion acquisition of Aleris, a major benefit of which will in large part play out as synergies between the two companies’ factories in China.
The Atlanta-based aluminum company now expects the deal to be completed by Jan. 21. Plans initially called for closing it before the end of 2019.
As a condition of clearance by the China’s antitrust body, the State Administration for Market Regulation, Novelis has agreed to sell off an Aleris automotive finishing plant in Duffel, Belgium.
Novelis said the deal, which would create a company with more than 16,500 employees and 37 plants across 11 countries, has been conditionally approved by European regulators and “has a clear path forward” for approval in the U.S.
Aleris is based in Cleveland and has a strong presence in the aerospace sector. Novelis is strong in automotive sheet aluminum and a variety of other segments, including beverage cans. Both companies have factories near one another in China’s Yangtze River Delta, not too far from Shanghai.