Hindalco to buy Alcan stake in Utkal

Aditya Birla group flagship, Hindalco Industries, has reached an agreement to buy out joint venture partner Alcan's 45% holding in Utkal Alumina International (Utkal) for an undisclosed amount. Alcan, which is in the middle of a friendly acquisition by Rio Tinto for $38 billion, had announced its intention to sell its interest in Utkal earlier this year. Since Hindalco, which held the balance 55% in Utkal, had the first right of refusal, Birlas decided to reach an agreement rather than bring in another joint venture partner. The transaction will be completed over the next 30 days. It will mark the complete exit of Alcan from the Utkal project. Alcan will have no surviving rights or obligations, as Hindalco will become sole owner of the Utkal project. Utkal is currently executing a 1.5 million tonne alumina refinery in Orissa in addition to developing a new bauxite mine. On BSE, Hindalco jumped 3.22% to Rs 184.30 at close of trading hours on Wednesday. "Hindalco and Alcan will continue to have a cordial business association given that Alcan has ongoing contracts with Novelis. It is also the technology provider to the Utkal alumina project and some other alumina projects of Hindalco," a press release from the Aditya Birla group said. Hindalco completed acquisition of Novelis, which catapulted the company to the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia.