dChan - Q Origins Project Archive

Novelis Inc. Must Divest Assets to Consummate Transaction with Aleris Corporation

The Department of Justice prevailed in a first-of-a-kind arbitration, which will resolve a civil antitrust lawsuit challenging Novelis’s proposed merger with Aleris Corporation. As a result, Novelis must divest Aleris’s entire aluminum auto body sheet operations in North America, which will fully preserve competition in this important industry. In addition, under the terms of the arbitration agreement between defendants and the Department, Novelis must reimburse the Department for its fees and costs incurred in connection with the arbitration.

“Today’s decision is a victory for automakers and American consumers and taxpayers and will preserve competition in the market for aluminum auto body sheet,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “This first-of-its-kind arbitration proved to be an effective procedure for the streamlined adjudication of a dispositive issue in a merger challenge. As demonstrated in this case, arbitration has the potential to be a powerful dispute resolution tool in the right circumstances and I look forward to applying the learning from this case to future matters. I am very proud of the Division’s talented and dedicated team of lawyers, paralegals, and economists who pioneered this ground-breaking arbitration, representing the Division exceedingly well throughout these proceedings.”…..

https://www.justice.gov/opa/pr/justice-department-wins-historic-arbitration-merger-dispute