Alcan's foil, Alcoa, buys Reynolds
Alcoa, the world's largest aluminum maker, has wrapped up its deal to buy Reynolds Metals Inc. for $4.4 billion US in stock.
The company confirmed its bid had succeeded Thursday morning.
Alcoa beat out Canada's Alcan Aluminium, as well as Michigan Avenue Partners, based in Chicago, which were also trying to get control of Reynolds.
The deal is the second huge amalgamation in the industry this month.
Last week, Canada's Alcan Aluminium announced plans to merge with Pechiney SA of France and Switzerland's Alusuisse Lonza Group.
Montreal-based Alcan expressed interest in Reynolds after American rival Alcoa launched a $65-a-share hostile bid for the world's third-biggest aluminum producer.
The board of Reynolds rejected Alcoa's original multi-billion dollar offer. Alcoa then began talking directly to Reynolds shareholders, while also pursuing new talks that led to Thursday's merger deal..
On Wednesday, Alcan said it might acquire pieces of Reynolds if that company attempted a spinoff to protect itself from Alcoa's original hostile takeover bid.
Alcan, along with new partners Pechiney of France and Algroup of Switzerland, will be facing heavy regulatory scrutiny in the months to come, analysts said.
If it had bought Reynolds, the company would have faced additional obstacles.