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Zhongwang´s USD 2.33bn Buyout of US Aluminium, Rolled Products Producer Aleris Will Not Proceed
Tuesday 14 November 2017

14 November 2017 - The planned acquisition of Ohio-based global aluminium rolled products producer Aleris Corp. by China-based investment firm Zhongwang USA LLC will not proceed, Aleris said.

The aggregate value of Aleris amounts to USD 2.33bn.

The merger agreement between the parties expired by its terms on November 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.

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.

Aleris is a privately-held, leader in aluminium rolled products serving diverse industries including aerospace, automotive, building and construction, commercial transportation and industrial manufacturing.

Headquartered in Cleveland, Ohio, Aleris operates production facilities in North America, Europe and Asia.

Zhongwang USA is an investment company majority-owned by Liu Zhongtian through Zhongwang International Group Ltd., parent company of China Zhongwang.

China Zhongwang is the world's second largest industrial aluminum extrusion developer and manufacturer.

Credit Suisse acted as financial advisor to Aleris. Fried, Frank, Harris, Shriver and Jacobson, LLP acted as legal advisors.

Moelis and Co. advised the Aleris board on certain aspects of this transaction. Paul, Weiss, Wharton and Garrison LLP acted as legal advisors to Oaktree Capital Management.
Date Published: 14/11/2017
Target: Aleris Corp
Country: USA
Deal Size: 2.33bn (USD)
Sector: Metals/Mining
Type: Corporate acquisition
Financing: Cash
Status: Terminated
Vendor: Oaktree Capital Management, affiliates of Apollo Management and Sankaty Advisors
Buyer: Zhongwang USA LLC
Deal killed after the Committee on Foreign Investment inĀ the United StatesĀ (CFIUS) expressed concerns