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 This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
 
 
 
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| Case Details: | Price: |  
						| Case Code | : | BSTR265 | For delivery in electronic format: Rs. 300; For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra
 ThemesMergers | 
						Acquisitions | 
						Strategic Alliances |  
						| Case Length | : | 17 Pages |  
						| Period | : | 1991 - 2007 |  
						| Pub Date | : | 2007 |  
						| Teaching Note | : | Not Available |  
						| Organization | : | Hindalco, 
						Novelis |  
						| Industry | : | Metal and Mining |  
						| Countries | : | US, Canada | 
 Abstract:
					
						| 
The case discusses the acquisition of US-Canadian aluminum company Novelis by 
India-based Hindalco Industries Limited (Hindalco), a part of Aditya Vikram 
Birla Group of Companies, in May 2007. The case explains the acquisition deal in 
detail and highlights the benefits of the deal for both the companies.
 It also examines the valuation of the acquisition deal and how the deal was 
financed. The case concludes by describing the challenges that Hindalco would 
face in integrating the operations of Novelis and analyzing if the deal was 
overvalued as opined by some industry experts.
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 |  Issues:
» Study the synergies of the merger between Hindalco and Novelis
 » Study the rationale behind Hindalco acquiring a loss making aluminum company
 
 » Examine the way the acquisition deal was financed
 
 » Analyze whether the deal was overvalued or not
 
 » Analyze the trends in the global aluminum industry
 
 
 Contents:Keywords:Hindalco Industries Limited, Novelis Inc., Merger and 
Acquisition, Deal Valuation, Debt-equity Ratio, EV/EBITDA Ratio, Indian Aluminum 
Industry, Merger Integration, Consolidation, Downstream Business, Upstream 
Business 
Hindalco's Acquisition of Novelis
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