Hindalco Industries Ltd. Has agreed to acquire Alrics Corp, an aluminum manufacturer in the US, for approximately $2.6 billion to help Hindalco’s shareholder Manglam Burra broaden its path in the automotive industry. According to the document of Exchange, the Indian comoany issued an offer to Aleris through its US subsidiary Novelis Inc. The company said, the deal will be completed entirly through borrowing financing. The transaction will also be approved by the regulators and is expected to be completed with 9 to 15 months. Aleris produces aluminum sheet at its production sites in North America, Europe and China. Before that, Hindalco had planned to invest approximately $180 million in China to double its aluminum sheet production, and expand production in the US, invested about $300 million in a Kentucky automotive plant.

Hindalco said he hoped to take advantage of the growing globe demand for automotive metals, and the company expected that globe automotive metal demand to nearly triple in the next eight years. The document also shows that Aleris will eventually be incorporated into Novelis and the headquarters will be in Atlanta. The acquisition will increase the group’s annuall aluminum production to over 4.7 million tons. Burr said:” the two companies’s strategies are high unified, that is, they use a high value-added product pattern. Essentially, the profit margins are higher, they are less dependent on the London Metal Exchange, so the volatility is much lower.” Hindalco’s acquisition of Aleris is a strategic, its benefit industry includes automotive, transportation, aerospace and defense.