Hindalco explores tie-up with Alcoa for Nalco stake
Analysts welcome possible joint bid by Hindalco and Alcoa
The Nalco disinvestment exercise has led to flurry of negotiations between domestic and international metals majors. With a possible joining of hands between two aluminium giants, Hindalco, the country’s largest aluminium company and Alcoa, the world’s largest aluminium company, Hindalco, is exploring the option of teaming up to pitch for the 30 percent strategic stake in Nalco.
While market sources indicated that Sterlite Industries could be talking to various foreign companies to acquire a stake in Nalco, Sterlite strongly refuted it. The other possible venture is between the world’s second largest Russian Aluminium (RusAl) and the Khemkas of the Moscow based San group. This indication is primarily because the San group has varied interests in Russia and RusAl has shown keen interest to team up with an Indian company before bidding for Nalco.
However, analysts have welcomed a possible joint bid by Hindalco and Alcoa, as they feel ‘’it would ease funding requirements needed to bag Nalco.’’ Officials at Hindalco are however tight-lipped about any possible tie-ups. Meanwhile, the race for Nalco has also seen a new entrant in the form of Tata Steel, the country’s largest private sector steel company.
