Hindalco Faces Setback! US Federal Shutdown Halts $125-Million AluChem Deal
US government shutdown halts Hindalco's AluChem acquisition.
Hindalco Industries Ltd., part of the Aditya Birla Group, faces a major setback in its $125-million (Rs 1,075 crore) acquisition of US-based AluChem Companies Inc. The deal, announced in June, has been stalled due to the ongoing US federal government shutdown that began on October 1, 2025. The shutdown has disrupted the Committee on Foreign Investment in the United States (CFIUS), pausing critical regulatory reviews.
Hindalco submitted a 'short-form' declaration to CFIUS on August 6, which was accepted on August 12, triggering a 30-day assessment period ending September 10. Following this, CFIUS requested a 'long-form' declaration, submitted by Hindalco on September 30. However, the government shutdown has tolled statutory deadlines, leaving the deal in limbo. Once the shutdown ends and CFIUS accepts the final filing, the review process could take up to 105 days.
The acquisition aims to bolster Hindalco’s global footprint in the specialty alumina sector. AluChem, based in Ohio, specializes in high-quality specialty alumina, complementing Hindalco’s existing portfolio. The deal, executed through Hindalco’s subsidiary Aditya Holdings LLC, was expected to close in the September quarter, adding AluChem’s 60,000-tonne annual capacity across its Ohio and Arkansas facilities to Hindalco’s operations.
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Hindalco currently boasts 500,000 tonnes of specialty alumina capacity, with plans to scale up to 1 million tonnes by fiscal 2030. “This partnership empowers AluChem to scale rapidly in North America with Hindalco’s support,” said Ronald P. Zapletal, founder of AluChem Companies, Inc.
The US shutdown stems from a bitter budget dispute between the Republican and Democratic parties, halting federal operations for over 20 days. Hindalco’s stock rose 1.4% to Rs 795.9 on the BSE, outpacing the Sensex’s 0.9% gain. The company will announce its September quarter results on November 7.
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