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U.S. Lawmakers Ask Treasury to Block Zhongwang Takeover of Aleris

Thursday, November 3, 2016   (0 Comments)
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A dozen U.S. senators asked the Obama administration to block a Chinese company's $1.1 billion bid to take over a U.S. aluminum manufacturer, a deal that had surprised many U.S. aluminum-industry officials who have grown concerned about competition from China.

Zhongwang USA LLC in August agreed to buy Cleveland-based Aleris Corp. from its private-equity owners in a deal that would mark the highest price ever paid by a Chinese firm for a U.S. metals producer. Liu Zhongtian, who controls Zhongwang USA and is also founder and chairman of Chinese aluminum giant China Zhongwang Holdings Ltd., said the deal would offer a "complementary business foothold" for his operations in America.

 

In a letter sent Wednesday to Treasury Secretary Jack Lew, the senators said the deal should be rejected because it would "directly undermine our national security, including by jeopardizing the U.S. manufacturing base for sensitive technologies." The senators, including Ron Wyden (D., Ore.), the ranking member of the Senate finance subcommittee that oversees trade, Charles Schumer (D., N.Y.), and Rob Portman (R., Ohio), said Chinese policies that have harmed America's industrial base "have been implemented and utilized by Zhongwang." More...


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