Federal inquiry scuttles Zhongwang purchase of Aleris

Federal inquiry scuttles Zhongwang purchase of Aleris

Aluminum producer says it will focus on internal growth.

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November 27, 2017
Edited by Robert Schoenberger
Materials

Cleveland, Ohio – Aleris Corp. will not be purchased by China’s Zhongwang USA LLC. The merger agreement between the parties expired by its terms on Nov. 12, 2017.

The merger was subject to customary regulatory approvals, including approval from the Committee on Foreign Investment in the United States (CFIUS). In July 2017, CFIUS raised concerns about the transaction, and the parties withdrew their filing while extending the merger agreement to allow for additional discussions.

"While this is not the outcome we intended, we remain committed to our growth strategy and have made great strides over the past year in expanding our capacity and developing the capabilities required to meet the future demands of our industry," Aleris Chairman and CEO Sean Stack said.

Since 2010, Aleris has been owned and controlled by a group led by certain investment funds of Oaktree Capital Management, L.P., as well as certain funds managed by Apollo Management, L.P.