Hindalco Industries Ltd.'s plan to acquire US-based AluChem Companies Inc. has stalled due to the federal government shutdown that has impaired a regulatory body. The all-cash deal valued at $125 million or Rs 1,075 crore was announced in June.
The Aditya Birla Group company had filed a 'short-form' declaration to enable an expedited review of the transaction with the Committee on Foreign Investment in the United States on Aug. 6, Hindalco said in a stock exchang filing on Thursday.
CFIUS accepted the submission on Aug. 12, thereby commencing a 30-day assessment period that concluded on Sept. 10. Subsequently, CFIUS requested a 'long-form' declaration, which was duly submitted on Sept. 30.
"However, due to the ongoing U.S. federal government shutdown that began on October 1, 2025, statutory deadlines under the CFIUS review framework have been tolled. Once the shutdown concludes and CFIUS formally accepts the final filing for review, the process may take up to approximately 105 days to complete," the company said.
An acrimonious tussle over budgetary spending between the Donald Trump-led Republican party and the opposition Democratic party in the US Congress has grind the federal government to a halt for over 20 days.
The AluChem Companies acquisition is a strategic effort by Hindalco to strengthen its global presence in the downstream specialty alumina segment. The purchase will be executed through Hindalco’s wholly owned step-down subsidiary, Aditya Holdings LLC.
The Ohio-based company specialises in the production of specialty alumina, complementing Hindalco’s in-house portfolio of special alumina and alumina hydrates.
The transaction was supposed to close in the September quarter.
AluChem brings Hindalco a strong presence in North America with an annual capacity of 60,000 tonnes across its three advanced manufacturing facilities in Ohio and Arkansas.
Currently, Hindalco operates 5,00,000 tonnes of specialty alumina capacity and plans to increase up to 1 million tonnes by fiscal 2030.
"This partnership with Hindalco brings AluChem the ability and capital to scale up faster and build scale in North America," AluChem Companies, Inc. founder Ronald P Zapletal said.
Hindalco will announce its September quarter financial results on Nov. 7.
The stock was up 1.4% at Rs 795.9 on the BSE at 1:30 p.m., compared to a 0.9% jump in the benchmark Sensex.
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