Abstract
Indian aluminium giant Hindalco acquired Atlanta-based company Novelis, a world leader in aluminium rolling and flat-rolled aluminium products, on 15 May 2007. This acquisition was done to gain immediate scale and a global footprint. Acquiring Novelis would also give Hindalco access to sheet mills that supplied to can manufacturers and auto companies. By investing in downstream Hindalco would go up the value chain and become a world leader in downstream aluminium-rolled products. It was already the biggest producer of primary aluminium in Asia and leader in copper production in India. However, many analysts believed that Hindalco had overpaid for a company that was making losses and that aluminium prices would drop by 2011. Would this acquisition prove beneficial for the shareholders?
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© 2012 Palgrave Macmillan, a division of Macmillan Publishers Limited
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Prusty, S. (2012). Hindalco vs. Novelis: A Case on Acquisition. In: Yesudian, S. (eds) India: Acquiring its Way to a Global Footprint. Palgrave Macmillan, London. https://doi.org/10.1057/9780230363533_7
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DOI: https://doi.org/10.1057/9780230363533_7
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-33640-1
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