Hydro and Orkla propose remedies to obtain EU competition clearance for aluminium extrusions JV

Hydro and Orkla propose remedies to obtain EU competition clearance for 
aluminium extrusions JV 
OSLO, NORWAY -- (Marketwired) -- 04/18/13 --   Following the
agreement between Norsk Hydro ASA and Orkla ASA to combine their
respective aluminium extrusion businesses, the European Commission
has expressed preliminary concerns regarding the possible competitive
effects of the intended merger in certain markets. 
The concerns relate to multi-port extrusions (MPE) in Europe and
soft-alloy extrusions in the Nordic region, in this context defined as
Norway and Sweden. 
In response to the concerns expressed by the European Commission,
Orkla and Hydro propose, if required, to divest Sapa's MPE business
at Harderwijk in the Netherlands and Hydro's extrusion plant at
Raufoss in Norway, including Hydro's affiliated fabrication plant in
Vetlanda, Sweden. 
The European Commission's initial review period will be extended
until 14 May 2013. Provided that it approves the joint venture
transaction subject to these conditions, a divestment process of the
plants will be initiated. 
The planned transaction between Hydro and Orkla has been approved by
the U.S.
Department of Justice and relevant competition authorities in
several other jurisdictions. In addition to the clearance from the
European Commission, completion of the transaction is also subject to
approval by Chinese authorities. 
Hydro and Orkla expect the planned joint venture transaction,
retaining the company name Sapa, to be completed in the first half of
2013. 
Certain statements included within this announcement contain forward-looking
information, including, without limitation, those relating to
(a) forecasts,
projections and estimates, (b) statements of
management's plans, objectives and
strategies for Hydro, such as
planned expansions, investments or other projects,
(c) targeted
production volumes and costs, capacities or rates, start-up
costs,
cost reductions and profit objectives, (d) various
expectations about future
developments in Hydro's markets,
particularly prices, supply and demand and competition, (e) results
of operations, (f) margins, (g) growth rates, (h) risk
management, as
well as (i) statements preceded by "expected", "scheduled",
"targeted", "planned", "proposed", "intended" or similar statements. 
Although we believe that the expectations reflected in such
forward-looking statements are reasonable, these forward-looking
statements are based on a number of assumptions and forecasts that,
by their nature, involve risk and uncertainty.  Various factors could
cause our actual results to differ materially from those projected in
a forward-looking statement or affect the
extent to which a
particular projection is realized.  Factors that could cause
these
differences include, but are not limited to: our continued ability to
reposition and restructure our upstream and downstream aluminium
business; changes in availability and cost of energy and raw
materials; global supply and
demand for aluminium and aluminium
products; world economic growth, including
rates of inflation and
industrial production; changes in the relative value of
currencies
and the value of commodity contracts; trends in Hydro's key
markets
and competition; and legislative, regulatory and political
factors. 
No assurance can be given that such expectations will prove to have
been correct.  Hydro disclaims any obligation to update or revise any
forward- looking statements, whether as a result of new information,
future events or otherwise. 
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants
that: 


 
(i) the releases contained herein are protected by copyright and
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     originality of the information contained therein.

 
Source: Norsk Hydro via Thomson Reuters ONE 
[HUG#1694212] 
Investor contact
Contact
Rikard Lindqvist
Cellular    +47 41751199
E-mail      Rikard.Lindqvist@hydro.com 
Press contact
Contact
Halvor Molland
Cellular    +47 92979797
E-mail      Halvor.Molland@hydro.com
 
 
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