India aluminium firm buys Novelis

Hindalco boss Kumar Birla says the firm is now a global player

India's largest aluminium producer, Hindalco Industries, has agreed to buy its US-Canadian rival Novelis for $5.9bn (£3bn) in an all-cash deal.

The deal values Novelis at $3.5bn, as Hindalco is also paying off the North American firm's $2.4bn debt.

Novelis is the world's largest producer of rolled aluminium and its customers include Coca-Cola and the world's largest canmaker Rexam.

It comes two weeks after Indian steel firm Tata bought Anglo-Dutch Corus.

'Catapult'

Novelis is headquartered in Atlanta, Georgia, but registered as a Canadian company.

Its shares are listed in both Toronto and New York.

"This is India's largest acquisition of a North American company and will catapult us into a Fortune 500 companies list," said Hindalco's boss Kumar Birla.

Hindalco's shares were down 9% in Monday trading following the announcement.