Novelis Acquires Aleris Novelis Inc. As a result, Novelis is now even better positioned to meet increasing customer demand for aluminum by expanding its innovative product portfolio; creating a more skilled and diverse workforce; and deepening its commitment to safety, sustainability, quality and partnership. The company will also add aerospace to its portfolio and enhance its ability to continue to bring innovative products to market, strengthen its research and development capabilities and deliver on its purpose of shaping a sustainable world together. With a world-class workforce, a presence in the most competitive and technically demanding end-markets, and the ability to deliver rapid, adaptive and sustainable solutions, Novelis will be able to even better serve our customers. Fact Sheet Customers Our customer relationships are paramount to our success, and we remain committed to serving you seamlessly throughout the integration process.
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You are on page 1of 6 Search inside document Cases Hindalco Novelis Merger One of the biggest mergers in the aluminium industry took place between Hindalco and Novelis. This deal made Hindalco one of the leading players in the global aluminium industry. The deal inclusive of all debts was valued approximately at 6 billion US dollars. The benefits to Hindalco from this deal were increase in its global presence and access to the most advanced technology in the industry.
The important aspects of the agreement that was signed on 10th feb, between Hindalco and Novelis are The deal was values at approximately 6 billion US dollars. This amount was inclusive of all debt. Each share of Novelis was valued at This deal made Hindalco a very strong player in the global aluminium market. The milestones reached by Hindalco through this deal were Hindalco became the largest aluminium rolling company in the world. Hindalco will be able to ship primary aluminium from India and make value-added products.
Hindalcos rationale for the acquisition is increasing scale of operation, entry into high end downstream market and enhancing global presence.
Novelis is the global leader in terms of volume in rolled products with annual production capacity of 2. It has presence in 11 countries and provides sheets and foils to automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. Hindalcos rationale for the acquisition is increasing scale of operation, entry into highend downstream market and enhancing global presence. With over 4 million Tata vehicles plying in India, it is the leader in commercial vehicles and the second largest in passenger vehicles.
Swot analysis Strength Tata strong management capability and strong monetary base to invest Acquisition will help TATA in competing with other brands. Improving risk profile of TATA diversification in different market.
Weakness Inexperience in handling luxury automobile brand. Difficult to manage the work culture. Opportunity Rising demand for luxury automobiles in growing market like India and china.
Jaguar is good in technology, Engine, IT, Accounting. Complete product line with addition of luxury brand. Access into European and American market. Volatility in the market. The merger enhance the value for shareholder of both the companies This merger would unlock synergies from combined operations likeCrude sourcing, Product placement, Supply Chain Optimization.
It provide Greater flexibility in operations planning Expansion of refined product range. Efficient utilization of combined cash flows integrated energy companies consistently get higher valuations. RIL to enhance its competitiveness in energy value chain Impact of Merger Proposal RIL among top 10 private sector refining companies globally It will own 2 of the worlds 3 largest, most complex modern refineries.
It will be the worlds largest producer of ultra-clean fuels at a single location. Case 4 Procter and Gamble and Gillette the case discusses the merger of Gillette with Procter and Gamble, the two leading consumer goods companies.
It describes the recent trends and studies the ongoing consolidation in the consumer goods industry. The case presents the rationale behind the decision to merge and the perceived synergies that both the companies can achieve from the merger.
It also discusses the possible threats to the merger including cultural differences and various other issues. Both the companies expected the merger to bring tremendous synergies. According to Lafley, "This combination of two best-inclass companies creates a stronger brand portfolio, opportunities for even more innovation, faster sales growth, and cost savings.
The reason is that consumer products is, in the end, a scale business. The more scale a company can create, the more opportunities there are to grow margins and invest in brand innovation.
Most of these reductions would come from eliminating management overlaps and consolidation of business support functions. Product overlap would make it difficult to set the prices. There is a strong overlap in toothbrushes and toothpaste. Suggestion The firm should go with divestiture. They can start their own retail outlets for their products.
Hindalco's Novelis closer to acquiring Aleris after it agreed to divest Lewisport operations
You are on page 1of 6 Search inside document Cases Hindalco Novelis Merger One of the biggest mergers in the aluminium industry took place between Hindalco and Novelis. This deal made Hindalco one of the leading players in the global aluminium industry. The deal inclusive of all debts was valued approximately at 6 billion US dollars. The benefits to Hindalco from this deal were increase in its global presence and access to the most advanced technology in the industry. The important aspects of the agreement that was signed on 10th feb, between Hindalco and Novelis are The deal was values at approximately 6 billion US dollars. This amount was inclusive of all debt.
Hindalco to acquire Novelis for $6 bn
How do you look at the valuation? Those fears are completely unfounded. The way to look at valuation is to see other comparable transactions in the same sector. I would say that 7. Why would you say Aleris is a perfect fit for Novelis and Hindalco? I understand they are into value added products and that will give it a boost, but going forward what is the kind of synergy benefits that you see between the two companies?
Novelis Acquires Aleris
Last decade witnessed growing appetite for takeovers by Indian corporate across the globe as a part of their inorganic growth strategy. In this chain Indian aluminium giant Hindalco acquired Atlanta based company Novelis Inc, a world leader in aluminium rolling and flat-rolled aluminium products. Hindalco Industries Ltd. Strategically, the acquisition of Novelis takes Hindalco onto the global stage as the leader in downstream aluminium rolled products. Followings are the main issues to be discussed for critical review of this case: 1. What is the strategic rationale for this acquisition?