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Zhongwang acqusition of Aleris called off

Tuesday, November 14, 2017   (0 Comments)
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The planned acquisition of aluminum maker Aleris Corp. by Chinese investment firm Zhongwang USA has been terminated, the two companies announced Monday.

Aleris said the merger agreement terminated as of Sunday upon mutual agreement. The companies first announced the merger in August 2016.

In separate news releases Monday, the companies expressed disappointment that the deal will not proceed.

The companies had tried unsuccessfully to win approval for the $2.33 billion deal from the U.S. Committee on Foreign Investment, or CFIUS, which assesses mergers to ensure they do not endanger national security. Zhongwang USA said the decision was driven by uncertainty related to the receipt of CFIUS approval.

In November 2016, Senate Finance Committee Ranking Member Ron Wyden, D-Ore., and 12 other senators urged CFIUS to reject the merger, citing national security concerns. More...