New | US Senators ask Treasury to stop sale of Aleris to Chinese aluminium tycoon
The ranking Democrat on the Senate Committee on Finance is spearheading an effort to have the US reject a Chinese aluminium entrepreneur’s purchase of Cleveland-based Aleris Corp. on national security grounds.
Oregon’s Ron Wyden and 11 other senators signed a letter addressed to the Treasury Department asking for the US$2.3 billion acquisition announced in August to be reviewed, according to a copy obtained by Bloomberg. Should the Democrats win control of the Senate, Wyden would likely steer the agenda of the committee, which oversees trade.
Liu Zhongtian’s Zhongwang USA LLC plans to buy closely held Aleris for $1.11 billion in cash and $1.22 billion in debt, giving one of Asia’s biggest makers of extruded-aluminum products greater access to American and European technology, as well as buyers that include aerospace manufacturers like Boeing Co. and automakers such as Audi.
“Chinese entities, including state owned or state controlled enterprises, may have relationships with China’s military, compounding the risk that US technologies will fall into the wrong hands,” the letter, addressed to Treasury Secretary Jack Lew, said.
“Aleris’ R&D and technology are critical to current and long-term US economic and national security interests given Aleris’ use of advanced research and modelling techniques, development of high-strength alloys, and design of light armour material with increased ballistic performance,” they wrote. Other signatories include Chuck Schumer, a Democrat from New York; Al Franken, a Democrat from Minnesota; and Rob Portman, a Republican from Ohio.
