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Novelis, part of India's Hindalco Industries, bid for Aleris in
July last year as part of its diversification into the
aerospace, automotive, beverage can and construction industries
among others.
The European Commission conducted a four-month investigation of
the acquisition and last month set out its concerns over how the
deal could hurt competition, particularly for carmakers that use
the companies' products.
The EU competition enforcer, which is scheduled to decide on the
case by Sept. 16, and Novelis declined to comment.
Novelis and Aleris defended the proposed deal before antitrust
officials at a closed-door hearing last week, hoping to address
EU competition concerns and secure unconditional approval.
Trade unions from Belgium and Germany also attended the hearing
to voice support for the deal, people with direct knowledge of
the matter said.
Ahead of the hearing, Novelis felt it was premature to talk
about concessions but it has never ruled out the possibility,
people close to the situation told Reuters last month.
The company is ready to make a written commitment to increase
capacity and add 80 new jobs at the Aleris plant in Duffel,
Belgium, to allay regulatory concerns that capacity may be
curtailed to increase prices, a source close to the matter said.
Novelis has argued that the deal will not lead to higher prices
because of competition from other aluminum and steel producers
as well as customers' willingness to switch to rivals.
(Reporting by Foo Yun Chee; Editing by David Goodman)
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