Ess Dee Mulls To Acquire Alcan Arm

Mumbai: Ess Dee Aluminium, whose promoter Sudip Datta once depended on Alcan for the bulk of his income, has joined the competition to buy the packaging business of the Montreal-based giant, which was recently taken over by Rio Tinto. Rio Tinto, the new promoter of Alcan, has already started negotiations with the three companies, they said, adding that the deal size is expected to be around $1 billion (Rs 4,000 crore), or 1.2 times the turnover of the target.

RAlcan makes packaging material for food and beverages, medical and pharmaceuticals as well as cosmetics and tobacco industries. For Ess Dee, the successful acquisition of the packaging business of Alcan will give it presence in 13 countries something which, otherwise, will take at least 10 years. It is learnt that DSP Merrill Lynch and Enam are advising Ess Dee on the acquisition. The fact that two domestic companies are in the fray to buy a business, which is much bigger in size, indicates the growing appetite of Indian companies for overseas purchase. Post-Tata Steel''s acquisition of Corus-Tata Steel is one-fourth the size of Corus Indian Davids are not shy of vying for the assets of global Goliaths.