Latham & Watkins Assists Novelis in Securing CFIUS Clearance

Obtaining CFIUS clearance was a key milestone in Novelis' pending acquisition of Aleris Corporation.

February 25, 2019

Novelis Inc., the world leader in aluminum rolling and recycling and a wholly-owned subsidiary of India-based Hindalco Industries Ltd., received on February 13, 2019, clearance from the Committee on Foreign Investment in the United States (CFIUS) in connection with its proposed acquisition of Aleris Corporation, a global supplier of rolled aluminum products. CFIUS concluded that there are no unresolved national security issues with respect to the transaction, which was announced on July 26, 2018, and is valued at approximately $2.6 billion. Obtaining CFIUS clearance was a key milestone for the transaction and satisfies one of the conditions to the closing of the merger, which remains subject to other customary closing conditions, including receipt of other regulatory approvals. In 2017, CFIUS rejected a proposed acquisition of Aleris by Zhongwang USA LLC, a Chinese company. 

Latham & Watkins LLP represents Novelis in the transaction and advised the company on the CFIUS clearance process. The CFIUS team was led by Washington, D.C. partners Les Carnegie and Edward Shapiro, with associate Zachary Eddington. The corporate deal team is led by New York partner Peter Labonski and Chicago partner Bradley Faris, with associates Daniel Breslin, Brian Yoon, and Matthew Dixon. Latham is also providing advice on antitrust, tax, and benefits and compensation matters in connection with the transaction.

 

 
 
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