Norsk Hydro : Norsk Hydro: EU approves joint venture in aluminium solutions
The EU Commission has approved today the transaction between Norwegian
aluminium company Norsk Hydro ASA and branded consumer goods group Orkla ASA
to form a 50/50 joint venture within aluminium solutions to be named Sapa.
Pending necessary approval from Chinese competition authorities, the parties
expect the transaction to be completed in third quarter 2013, at the latest.
The transaction has already been approved by the U.S. Department of Justice
and relevant competition authorities in several other jurisdictions. The
parties also need approval from Chinese competition authorities (MOFCOM),
which is currently evaluating the transaction.
Due to limited overlap of the parties' operations in China, the parties expect
the transaction to be approved. The timing of the approval from MOFCOM is
difficult to determine, but the parties expect the transaction to be approved
in the third quarter, at the latest.
Approval from the EU Commission is conditioned on the sale of Hydro's
aluminium profile operations at Raufoss in Norway and its affiliated
fabrication plant in Vetlanda in Sweden, as well as Sapa's multi-port
extrusion (MPE) operations in Harderwijk in the Netherlands. The parties have
started the process to divest these businesses in line with the Commission's
From June 1 and until closing, Arnstein Sletmoe, who has been appointed CFO of
the new Sapa joint venture, will temporarily head up Hydro's Extruded Products
business area. At the same time, Executive Vice President Hans Joachim Kock,
currently head of Extruded Products, will take over as Head of Finance in the
Bauxite & Alumina business area and leave the Corporate Management Board
(CMB), as previously announced. Sletmoe will report directly to CEO Svein
Richard Brandtzæg, but will not be part of the CMB.
Contact Rikard Lindqvist
Cellular +47 41751199
Contact Pål Kildemo
Cellular +47 97096711
Contact Halvor Molland
Cellular +47 92979797
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
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
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
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
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(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Norsk Hydro via Thomson Reuters ONE
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