Mumbai, October 2: Leading aluminium producer Hindalco Industries has mutually agreed to call off its proposed $125 million acquisition of US based AluChem Companies due to extended delays that both companies could not control. The transaction has been formally terminated on October 1, 2026 the company said in a regulatory disclosure.
The acquisition was originally announced in June 2025 with a value of $125 million. This would have helped Hindalco boost its presence in the specialty alumina segment, offering it better margins. Over the 16-month period, both companies have encountered extensive delays and administrative bottlenecks, forcing them to terminate their Equity Purchase Agreement. The deal, which was expected to wrap up within 2-4 months, never did so , as this would’ve been Hindalco third US acquisition, after purchasing Novellis for $6 billion in 2007 and Aleris for $2.8 billion in 2020.
Now that the deal stands cancelled, AluChem will continue operating independently in the speciality alumina sector, where it has built a strong track record.
Though this could delay Hindalco’s immediate entry into the US specialty alumina market, it continues to have the cash and borrowing capacity to deploy into other high return, value added product projects in future.
As the deal has been pending for more than a year, the markets haven’t made any sudden reactions to this development. The retention of capital (USD 125 million) offers them financial freedom at a time when competitive pressures rise in India due to higher bauxite auction premiums.
