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Zhongwang USA announces termination of proposed $2.3 billion acquisition of Aleris Corp

By Wu Yong and ZhengXin | | Updated: 2017-11-13 23:27

Zhongwang USA LLC announced on Monday that the merger agreement between Zhongwang USA and Aleris Corporation was terminated by mutual agreement on Sunday.

The decision was driven by uncertainty around approval from the US government's Committee on Foreign Investment in the United States.

The companies had entered into the $2.3 billion merger agreement in August 2016.

Zhongwang USA expressed disappointment that the acquisition would not proceed and issued a statement.

It said: "Through the proposed acquisition, the company was committed to preserving American jobs and investing substantial funds into Aleris, beyond the purchase price. The Aleris acquisition was a win-win opportunity for American workers and Zhongwang USA, particularly in Kentucky, Ohio, Michigan, and Iowa, where Zhongwang's substantial additional capital investment would increase productivity and American competitiveness while supporting in excess of 1,000 new jobs across four states."

Zhongwang USA said it was deeply disappointed by the outcome.

"This has been a constructive process for Zhongwang USA, and our executives have tremendous respect for the management and workers at Aleris, they are a world-class team," it added.

The company said it and its investors will continue to pursue expansion opportunities, including positive, job-creating opportunities in the United States and other parts of the world.

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