Hindalco Industries Limited ends US$125M AluChem purchase agreement
The Oct. 1 filing attributes the joint termination to delayed closing and gives no figure for any termination payment.
Mara Quinlan
Hindalco Industries Limited NSEHINDALCO BOM500440, the Indian aluminium and copper producer, said in a Thursday, Oct. 1, exchange filing that it and AluChem Companies, Inc. had jointly decided to terminate their agreement for a US$125 million enterprise-value acquisition after extended closing delays. The abandoned purchase would have added 60,000 tons of annual specialty alumina capacity at three U.S. plants to the 500,000 tons Hindalco reported in June 2025.
Hindalco shares NSEHINDALCO finished Thursday down 0.26 per cent at ₹939.35 at 3:30 p.m. IST on the National Stock Exchange. The NSE's 2026 calendar lists Friday, Oct. 2, as a Gandhi Jayanti holiday, leaving no Friday trading session after the announcement.
The filing said the delays were beyond either party's control but did not identify a specific obstacle to closing. The US$125 million in the original announcement was an enterprise value for the proposed purchase; the filing gave no figure for a termination fee, other exit payment or financial charge. It also did not quantify any effect on Hindalco's earnings. AluChem will continue serving its customers independently, according to the filing.
Hindalco had planned to buy all of AluChem's equity through Aditya Holdings LLC, a wholly owned subsidiary, according to its June 24, 2025, release. That announcement said the deal was subject to customary closing conditions and regulatory approvals and was expected to close in the following quarter. The Oct. 1 filing names no replacement transaction or new acquisition timetable.
"Hindalco’s broader strategy of scaling high-value, technology led value-added products (VAP) in its specialty alumina business remains unchanged, and the Company will continue to evaluate opportunities, including in the United States, consistent with this strategy," the company said in the filing.
AluChem's own June 2025 announcement called the proposed purchase a signed definitive agreement for all its equity. Hindalco's Oct. 1 filing says the parties decided to terminate that agreement before the sale of the U.S. producer was completed.
The June 2025 release described AluChem's plants in Ohio and Arkansas as making calcined and tabular alumina, including low-soda grades used in industrial refractories and precision mechanical components. Hindalco said the acquisition would expand its North American customer base and product range. With the agreement terminated, the AluChem facilities remain outside Hindalco's operations. The original announcement provided no revenue or profit figure for AluChem.
Hindalco's June 2025 plan called for specialty alumina capacity to reach one million tons by fiscal 2030, twice the 500,000 tons it reported then. The Oct. 1 notice says the broader growth strategy is unchanged, but it gives no revised capacity schedule or project to replace the proposed AluChem purchase. It also does not say whether Hindalco expects existing plants or another acquisition to supply the additional capacity.
Trading on the NSE resumes Monday, Oct. 5, after the Friday holiday.
