The company said that following its earlier intimations regarding the filing of a short-form and subsequently a long-form declaration with CFIUS, the statutory timelines under the CFIUS review framework have been tolled. As a result, the ongoing CFIUS review process and the related transaction are temporarily halted.
Hindalco stated that no definitive timeline is currently available for the conclusion of the US government shutdown. Consequently, there is no clarity on the completion of the CFIUS review process at this stage.
Also Read: Hindalco arm Novelis signs agreement with AV Minerals to sell 13 lakh shares for $200 million
What is CFIUS?
The Committee on Foreign Investment in the United States is an interagency committee that reviews foreign investments, mergers, and real estate transactions for national security risks. Led by the Treasury Department, it can block, condition, or unwind deals involving US businesses, particularly those involving critical technology, infrastructure, or sensitive data
The update pertains to the proposed acquisition of US-based AluChem Companies, Inc. by Aditya Holdings LLC, a step-down wholly owned subsidiary of Hindalco Industries Ltd. Last year, Hindalco Industries Ltd announced that it would acquire AluChem Companies Inc. for $125 million (₹1,075 crore) in an all-cash transaction. The transaction is expected to close in the upcoming quarter, subject to customary closing conditions and regulatory approvals.
AluChem Companies Inc. is a manufacturer of specialty alumina. Hindalco’s specialty alumina portfolio comprises special alumina and alumina hydrates manufactured in-house. AluChem has an annual capacity of 60,000 tonnes across three manufacturing facilities located in Ohio and Arkansas, strengthening Hindalco’s presence in North America.
Also Read: Hindalco shares fall as Novelis drag hits; near-term pressure likely
Hindalco currently operates 5,00,000 tonnes of specialty alumina capacity and has outlined plans to scale this up to 1 million tonnes by FY30. Shares of Hindalco Industries Ltd ended at ₹941.00, up by ₹4.10, or 0.44%, on the BSE.