Aluminum Corp of China (Chinalco), parent of publicly traded
Chalco, has acquired China Non-ferrous New Metals Co, the latest in
a string of takeovers of its domestic rivals.
Chinalco, China's largest aluminum and alumina producer, has
purchased a 100 percent stake of the non-ferrous metals unit from
Liuzhou China Tin Group, a senior official from Chinalco, who did
not want to be named, told China Daily. He declined to
disclose how much Chinalco paid for the stake.
The State-owned Chinalco and China Tin Group, which is based in
Liuzhou, South China's Guangxi Zhuang Autonomous Region, inked the
asset transfer deal in Beijing last Thursday, Chinalco said on its
website.
Chinalco will restructure China Non-ferrous New Metals Co, but
has no plans yet to inject the newly acquired firm's assets into
Chalco, which is listed in Shanghai, Hong Kong and New York, said
the official.
Founded in 1985, China Non-ferrous New Metals Co was previously
wholly controlled by Liuzhou China Tin Group, which produces
indium, lead, antimony, zinc, silver, cadmium and bismuth.
China Non-ferrous New Metals Co is involved in the business of
non-ferrous metals, minerals, chemicals and additives for aluminum
products. Chinalco is eyeing the company's alumina and other metal
processing business, it said.
"The acquired company's geographical advantage - its base is
quite close to our headquarters - also helped in its marriage with
Chinalco," the official added.
Chinalco and China Non-ferrous New Metals Co are both located in
Beijing.
The alumina major also scotched speculation that it was planning
to merge or take a stake in Minmetals Development Co Ltd, a listed
unit of State-owned China Minmetals Corporation, which also trades
and invests in non-ferrous metals and steel.
The alumina company, the world's third largest alumina producer,
is expanding into other metals to build itself into a multinational
with a diversified metals business.
Chinalco struck a deal last month to take a 75 percent stake in
Northeast Light Alloy Co Ltd, a Harbin-based manufacturer of
aluminum and magnesium alloy. It has also completed a $860 million
takeover of Peru Copper and agreed to buy a 49 percent stake in
Yunnan Copper.
The company also controls Shaanxi Non-ferrous Metals, which owns
Jinduicheng Molybdenum Group, the country's second largest miner of
the rare metal.
Chinalco posted a first-half sales increase of 36.2 percent over
last year and 10.8 percent net profit growth, buoyed by a series of
takeovers that boosted capacity.
(China Daily October 16, 2007)
