Japan’s Mitsubishi Materials to sell its aluminum business to an American fund

TOKYO, Nov. 25 (Reuters) – Japan’s Mitsubishi Materials Corp said on Thursday it would sell its aluminum business, used for beverage cans and auto parts, to U.S. investment fund Apollo Global Management for an undisclosed amount .

Although the aluminum market is expected to grow globally, Mitsubishi Materials has decided to divest its aluminum business as it is difficult to find synergies with its other businesses such as copper products for electric vehicles and cement. , he said in a statement.

As a result of the deal, the company will record a loss of 29 billion yen ($ 251 million) as a restructuring charge in the January-March quarter, but the loss has been discounted in its profit forecast. for the year announced earlier this month, he mentioned.

Mitsubishi Materials also said its stake in Indonesian copper smelter PT Smelting, its joint venture with PT Freeport Indonesia, will increase from 60.5% to 35% after an expansion of the smelter’s processing capacity.

PT Smelting will increase its capacity by borrowing the funds necessary for the expansion work of PT Freeport and the loan will be converted into newly issued shares of PT Smelting upon completion of the expansion work, the Japanese company said.

The expansion aims to increase the smelter’s annual copper concentrate processing capacity by 30%, with an estimated expansion cost of $ 250 million and a target completion date of the end of December 2023. (1 $ = 115 3400 yen) (Report by Yuka Obayashi; Edited by Elaine Hardcastle)

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