Apollo Global Management is near to close a deal to acquire aluminum giant Arconic, reported Reuters on Tuesday citing sources familiar with the deal.
In its bid to buy Arconic, Apollo will pay roughly $22 per share or $10.6 billion.
The buyout has yet to be approved by the board of New York-based Arconic, meanwhile it has asked Apollo and Elliot Management, the activist hedge fund that sits on Arconic board, to conclude official procedure in order to make it able to come to a final decision by the weekend, sources said.
If the debt would assume to be included in the deal amount then it will be $15 billion Apollo would have to pay, which would also make it one of the biggest acquisitions since 2008 financial crisis.
Deutsche Bank has been leading the fully committed financing for the deal, a source close to the talks said.
The debt markets have recovered from a slow pace activity to that healthier point where it can come forward for a large buyout of a company that makes aluminum parts for the aerospace, sources said. Decent earnings and growing employment rate in this month have comforted the worries of debt market which was under an anxiety attack which has come to an end now, an attorney close to the deal said.
To close the deal another distressing issue for the Apollo is the allegations upon construction panels sold by a UK-base unit of Arconic, of being cause of quick spread of fire at Grenfell Tower in London in which 72 people were killed, but the Elliot Management, by acquiring majority control of the construction division along with the liabilities of Grenfell, has agreed to take on the risk itself to make the deal good.
The Grenfell Tower investigation has basically changed the whole auction process, a source close to the situation said.