Hindalco Industries announced that it called off its proposed $125 million acquisition of US‑based AluChem Companies, effectively ending the deal story that began more than a year ago.
Aditya Birla Group’s metals arm said Hindalco and AluChem first announced the deal in June 2025. In the recent regulatory filing, Hindalco stated: “After due consideration, [we] have jointly decided to terminate the Equity Purchase Agreement due to extended closure delays beyond the control of either party.”
The transaction for AluChem’s speciality calcined and tabular alumina business was to be executed through Aditya Holdings LLC, a step‑down wholly owned unit of Hindalco.
Over the past 16 months, Hindalco issued five prior updates on the deal—in October 2025, February 2026 (twice), May 2026 and August 2026—and finally noted that the closing delays were beyond the control of either side.
Hindalco also said that the collapse of the AluChem deal did not alter its push for speciality alumina, stating that the company’s strategy of “scaling high‑value, technology-led value‑added products (VAP) in its speciality alumina business remains unchanged.” This meant that the steel giant could keep looking west at the United States for an alternative.
Hindalco currently operated about 500,000 tonnes of speciality alumina capacity and aimed to double this to 1 million tonnes by FY30. As per its last annual report, production capacity in the segment stood at 0.56 million tonnes.
Despite a yearly 22 per cent return on its stock on the NSE, Hindalco has slipped more than 7 per cent in the past one month.
