New aluminum giant
In another indication of the increasing global reach of Indian companies, aluminum maker, Hindalco, announced it would buy Canadian/US aluminum products maker Novelis Inc. The deal, for over $6 billion (including debt), will bring together the two significant aluminum manufacturers in the world.
The combined firms will still be far smaller than the industry giants, Alcan and Alcoa, which dominate the market. Novelis itself is a spin-off from Alcan, forced by regulators after Alcan acquired French rival Pechiney in 2004. Its main plant is located in Atlanta, where it is a major supplier to Coca-Cola. Another major client is Anheuser-Busch. Novelis has a world-wide reach.
Hindalco is a part of the Indian conglomerate Aditya Birla Group, which is a player in such fields as mining, textiles, carbon black, chemicals, and others. Hindalco is involved in the copper industry.
There is some speculation that Russian aluminum giant Rusal may try to outbid Hindalco. In any case, it's another step in the ongoing consolidation of the metals market, coming just weeks after Tata Steel finalized its acquisition of Corus.
10:13:03 PM 
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