The US subsidiary of Hindalco Industries Ltd, Novelis has agreed to acquire Aleris Corporation for about $2.6 billion as per a statement by the chairman of Aditya Birla Group on Thursday at a press conference.

"This basically is broken up into $775 million of equity and the $1.8 billion balance being debt that Aleris has on its balance sheet already," said Kumar Mangalam Birla.

The acquisition will give Novelis the capacity in high-end aerospace and automotive segments with Aleris' 13 manufacturing facilities across North America, Asia, and Europe. In its statement, Novelis said that as a combined entity, it will have a pro forma revenue of about $15 billion and an employee base of approximately 16,500 in 37 facilities.

Steve Fisher, president and chief executive of Novelis Inc., said, "Acquiring Aleris is the right opportunity at the right time as they are set for transformational growth." He further added, "the significant investments they've made in the high-demand, high-value aerospace, and automotive segments have resulted in favorable long-term, global contracts." KM Birla called the deal a "very positive development."