LONDON - Alcoa could divest parts of its aerospace and automotive businesses to satisfy regulatory requirements as part of any deal to buy Alcan, Alcoa said on Thursday.
"Overlaps are mostly in the aerospace business, and there is a slight one in automotive products," Alcoa Chief Executive and Chairman Alain Belda said, naming automotive sheet and heat exchangers in particular.
The combined company would continue to be investment grade, he said, adding the debt-to-equity ratio would approach 60-40 initially.
"We will remain investment grade," he said, speaking at a conference webcast from Dublin.
A combined Alcoa-Alcan -- which would be by far the world's biggest aluminium producer -- would give investors greater exposure to the price of aluminium , he said, describing the market for the metal as "strong in the short and long term."
Most of the combined company's sources of raw materials bauxite and alumina would be in the bottom half of the cost curve, he said, and it would itself generate 34 percent of the power it needed.
On Monday, Alcoa said it would make a hostile bid for Alcan for nearly $27 billion after talks between the two firms failed to lead to a deal.
豫公网安备41010502003434号