Chalco mulls deals

In what could result in a mainland aluminum powerhouse, Hong-Kong listed Chalco said it is considering taking private two aluminum companies listed on mainland bourses as well as acquiring several other domestic smelting companies, The Wall Street Journal reported. Chalco, China's top aluminum producer by output, said it might take private its 71.41%-owned Shandong Aluminum Industry and its 28%-owned Lanzhou Aluminum, China's third-largest aluminum maker by output. Chen Jihua, Chalco's executive director and vice president, has said the company is considering listing domestically, and taking the two companies private would mean Chalco would not have to revamp their shareholding structures under Beijing's stock market reform efforts. The Journal, citing an unnamed analyst, reported Chalco would need to pay US$445.7 million to take the two companies private by buying the outstanding shares it doesn't already own.