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India's Aditya Birla Group acquires Novelis

February 12, 2007|From the Associated Press

MUMBAI, INDIA — Aluminum and copper producer Hindalco Industries Ltd. said Sunday it planned to pay $3.6 billion to acquire Atlanta-based aluminum producer Novelis Inc.

The all-cash acquisition would make Hindalco the largest rolled-aluminum products manufacturer in the world, a company statement said. Hindalco also would assume Novelis' debt of $2.4 billion.

The planned Hindalco takeover comes less than two weeks after India's Tata Steel won a bidding war for European steel maker Corus Group when its $11.3 billion offer topped a bid by a Brazilian company.

Hindalco is the flagship company of Mumbai-based Aditya Birla Group, with interests in cement, metals, telecommunication and textiles. The acquisition, subject to some regulatory approvals, is likely to be completed by the second quarter of 2007, Hindalco said. Novelis shareholders will receive $44.93 in cash for every share owned, the statement said.

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