Zhongwang drops Aleris bid after regulatory snag

Zhongwang USA, an investment firm backed by Chinese tycoon Liu Zhongtian, said on Tuesday that it would continue to pursue overseas business opportunities even as it called off its planned acquisition of US aluminum maker Aleris Corp after failing to win US government approval.

"While this is not the outcome we intended, we remain committed to looking for investment opportunities in the US as well as other overseas markets," the company told China Daily.

Though the deal will not proceed, the company still believes that the cooperation could have been 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 have increased productivity and American competitiveness while supporting in excess of 1,000 new jobs across four states, it said in a statement.