The EU Commission has today approved the transaction between Norsk Hydro ASA and Orkla ASA to form a 50/50 joint venture, to be named Sapa. Pending necessary approval from Chinese competition authorities, the parties expect the transaction to be completed at the latest in third quarter 2013.
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 are 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 at the latest in the third quarter.
Approval from the EU Commission is conditional on the sale of Hydro's aluminium profile business at Raufoss in Norway and in Vetlanda in Sweden, as well as Sapa's multi-port extrusion (MPE) business in Harderwijk in the Netherlands. The parties have started the process to spin off these businesses in line with the Commission's decision.
Oslo, 13 May 2013
Håkon Mageli, EVP Corporate Communications and Corporate Affairs
Tel: +47 92 84 58 28
Rune Helland, SVP Investor Relations
Tel: +47 99 71 35 50
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.