Shares of aluminum producer Novelis Inc. surged Monday on the first trading day after news that Indian aluminum and copper producer Hindalco Industries Ltd. would buy the Canadian company for $3.6 billion.

The deal would create the largest rolled-aluminum products manufacturer in the world, according to Hindalco.

Novelis shares soared $5.22, or 13.5 percent, to $43.76 in afternoon trading on the New York Stock Exchange, after earlier hitting a new 52-week high of $44.01. Shares previously traded in a 52-week range of $17.89 to $41.50. The stock began a sharp climb in August of last year.

Novelis shareholders will receive $44.93 in cash for every share owned. Under the transaction, Hindalco also agreed to take over $2.4 billion in Novelis’ debt.

The proposed takeover comes less than two weeks after India’s Tata Steel won a bidding war to buy European steel maker Corus Group PLC for $11.3 billion.

Hindalco’s purchase of Novelis, announced Sunday, is expected to close in the second quarter following regulatory approval.

AP

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