Constellium NV announced Monday it has closed on a $1.4 billion acquisition of Wise Metals Intermediate Holdings’ private aluminum sheet production facility in Muscle Shoals, Ala. The deal, which was first reported in October, includes $455 million in cash and the assumption of $945 million in debt.
By acquiring Wise Metals, Constellium will have access to 450,000 metric tons of hot mill capacity, increasing its presence in the North American Body-in-White (BiW) market to build car bodies. Constellium plans to invest $750 million in the Muscle Shoals plant by 2022 to boost involvement.
The Indian aluminum cash price saw the biggest decline of the day, dropping 1.4% to close at INR 116.40 ($1.84) per kilogram on Monday, January 5. The 3-month price of aluminum saw a 0.6% decline on the LME to $1,848 per metric ton. The cash price of primary aluminum weakened by 0.5% on the LME, settling at $1,821 per metric ton.
Chinese aluminum prices were mixed for the day. Monday saw the Chinese aluminum cash price drift down 0.9% to CNY 12,870 ($2,074) per metric ton after three quiet days. The price of Chinese aluminum bar fell 0.9% to a 30-day low of CNY 12,880 ($2,076) per metric ton on Monday. The price of Chinese aluminum scrap continues hovering around CNY 12,600 ($2,031) per metric ton for the fifth day in a row. The price of Chinese aluminum billet remained essentially flat at CNY 13,200 ($2,127) per metric ton.