Hindalco terminates AluChem acquisition deal after extended delays; alumina strategy unchanged
Hindalco and AluChem have terminated their agreement for the specialty alumina business acquisition after delays beyond both parties' control.
- Oct 2, 2026,
- Updated Oct 2, 2026 10:41 AM IST
Hindalco Industries Ltd and AluChem Companies, Inc have jointly decided to terminate the equity purchase agreement for the acquisition of AluChem’s specialty calcined and tabular alumina business. The decision follows extended delays in closing the transaction that were beyond the control of either party, bringing to an end a process that had gone through multiple extensions.
The termination was formalised through a filing dated October 1, 2026 and Hindalco disclosed this through an exchange filing. This was the sixth update on the proposed acquisition, which had earlier been disclosed in June 2025, October 2025, February 2026, May 2026 and August 2026. The proposed deal involved Aditya Holdings LLC, a step-down wholly owned subsidiary of Hindalco.
Hindalco, the flagship company of Aditya Birla Croup, said the termination does not alter its broader strategy for its specialty alumina business. The company said it remains focused on scaling high-value, technology-led value-added products within the segment and will continue to evaluate opportunities, including in the United States, in line with that strategy.
AluChem will continue to serve its customers independently across the specialty alumina value chain. The company has been operating in the sector for 48 years. The termination means the business will not be integrated into Hindalco’s portfolio and does not indicate any operational shutdown at AluChem.
The acquisition process had seen several regulatory updates over a period of around 16 months. Both parties said the decision to end the transaction was taken after due consideration, with factors outside their control cited as the main reason the deal could not be closed.
Shares of Hindalco Industries settled at Rs 944.40 on Thursday, rising 0.22 per cent for the day. The total market capitalization of Rs 2.12 lakh crore. The stock is down 20 per cent from its 52-week high, while it is down 7 per cent in the last one month.
Hindalco Industries Ltd and AluChem Companies, Inc have jointly decided to terminate the equity purchase agreement for the acquisition of AluChem’s specialty calcined and tabular alumina business. The decision follows extended delays in closing the transaction that were beyond the control of either party, bringing to an end a process that had gone through multiple extensions.
The termination was formalised through a filing dated October 1, 2026 and Hindalco disclosed this through an exchange filing. This was the sixth update on the proposed acquisition, which had earlier been disclosed in June 2025, October 2025, February 2026, May 2026 and August 2026. The proposed deal involved Aditya Holdings LLC, a step-down wholly owned subsidiary of Hindalco.
Hindalco, the flagship company of Aditya Birla Croup, said the termination does not alter its broader strategy for its specialty alumina business. The company said it remains focused on scaling high-value, technology-led value-added products within the segment and will continue to evaluate opportunities, including in the United States, in line with that strategy.
AluChem will continue to serve its customers independently across the specialty alumina value chain. The company has been operating in the sector for 48 years. The termination means the business will not be integrated into Hindalco’s portfolio and does not indicate any operational shutdown at AluChem.
The acquisition process had seen several regulatory updates over a period of around 16 months. Both parties said the decision to end the transaction was taken after due consideration, with factors outside their control cited as the main reason the deal could not be closed.
Shares of Hindalco Industries settled at Rs 944.40 on Thursday, rising 0.22 per cent for the day. The total market capitalization of Rs 2.12 lakh crore. The stock is down 20 per cent from its 52-week high, while it is down 7 per cent in the last one month.