The US Justice Department on Wednesday filed a lawsuit aimed at stopping Novelis Inc’s proposed $2.6 billion purchase of Aleris Corp because of concern over higher prices for aluminum sheet used to make cars.
The department said in a statement that the deal would combine two of the four major North American producers of aluminum to make automobile bodies. The department described Ohio-based Aleris as an “aggressive competitor” and said the deal would give Novelis up to 60% of projected domestic capacity.
Novelis, which is U.S.-based but owned by India’s Hindalco Industries, said in a statement that it remained determined to close the deal by Jan. 21, the outside date for the merger agreement.
Full Content: Reuters