US Shutdown Puts Hindalco’s $125 Million Aluchem Acquisition On Hold

• The shutdown, which begun on October 1, has led to the suspension of statutory deadlines under CFIUS review framework.
• Acquisition to strengthen Hindalco’s presence in low soda tabular alumina market
• Retail sentiment has remains ‘bearish’ 

Hindalco Industries’ $125 million acquisition of US-based AluChem Companies has run into delays due to the ongoing federal government shutdown, which has affected the Committee on Foreign Investment in the United States (CFIUS).

The shutdown, which begun on October 1, has led to the suspension of statutory deadlines under the CFIUS review framework. As a result, the regulatory assessment of the deal may now take up to 105 days once the shutdown concludes and CFIUS formally accepts the filing for review.

Hindalco had submitted a ‘short-form’ declaration to expedite the review process on August 6, which was accepted by CFIUS on August 12, initiating a 30-day assessment period. Following a request from CFIUS, Hindalco filed a ‘long-form’ declaration on September 30.

In June, Hindalco announced that it would acquire AluChem Companies via its subsidiary Aditya Holdings. The acquisition will expand Hindalco’s presence in the specialty alumina segment, particularly in the low soda tabular alumina market.

It will also strengthen Hindalco’s high-value materials portfolio and position the company for growth in advanced sectors like electric mobility, semiconductors, and precision ceramics.

Based in Ohio, AluChem operates three advanced manufacturing facilities with an annual capacity of 60,000 tonnes. This acquisition aligns with Hindalco's strategy to increase its specialty alumina capacity to 1 million tonnes by fiscal year 2030.

Retail sentiment has remained ‘bearish’ for a while on Stocktwits. It was ‘neutral’ over a month back.

The stock closed 0.64% higher at ₹790.

Year-to-date, the stock has seen strong buying interest, gaining 31.5%.  

For updates and corrections, email newsroom[at]stocktwits[dot]com. 

Share

·

Add us on