OSLO, NORWAY--(Marketwired - Apr 18, 2013) - Following the agreement between Norsk HydroASA and Orkla ASA to combine their respective aluminium extrusionbusinesses, the European Commission has expressed preliminary concernsregarding the possible competitive effects of the intended merger incertain markets.
The concerns relate to multi-port extrusions (MPE) in Europe and soft-alloyextrusions in the Nordic region, in this context defined as Norway andSweden.
In response to the concerns expressed by the European Commission, Orkla andHydro propose, if required, to divest Sapa's MPE business at Harderwijk inthe Netherlands and Hydro's extrusion plant at Raufoss in Norway, includingHydro's affiliated fabrication plant in Vetlanda, Sweden.
The European Commission's initial review period will be extended until 14May 2013. Provided that it approves the joint venture transaction subjectto these conditions, a divestment process of the plants will be initiated.
The planned transaction between Hydro and Orkla has been approved by theU.S.Department of Justice and relevant competition authorities in several otherjurisdictions. In addition to the clearance from the European Commission,completion of the transaction is also subject to approval by Chineseauthorities.
Hydro and Orkla expect the planned joint venture transaction, retaining thecompany name Sapa, to be completed in the first half of 2013.
Certain statements included within this announcement contain forward-lookinginformation, including, without limitation, those relating to (a)forecasts,projections and estimates, (b) statements of management's plans, objectivesandstrategies for Hydro, such as planned expansions, investments or otherprojects,(c) targeted production volumes and costs, capacities or rates, start-upcosts,cost reductions and profit objectives, (d) various expectations aboutfuturedevelopments in Hydro's markets, particularly prices, supply and demand andcompetition, (e) results of operations, (f) margins, (g) growth rates, (h)riskmanagement, 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-lookingstatements are reasonable, these forward-looking statements are based on anumber of assumptions and forecasts that, by their nature, involve risk anduncertainty. Various factors could cause our actual results to differmaterially from those projected in a forward-looking statement or affecttheextent to which a particular projection is realized. Factors that couldcausethese differences include, but are not limited to: our continued ability toreposition and restructure our upstream and downstream aluminium business;changes in availability and cost of energy and raw materials; global supplyanddemand for aluminium and aluminium products; world economic growth,includingrates of inflation and industrial production; changes in the relative valueofcurrencies and the value of commodity contracts; trends in Hydro's keymarketsand competition; and legislative, regulatory and political factors.
No assurance can be given that such expectations will prove to have beencorrect. Hydro disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future eventsor otherwise.
This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:
(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 the information contained therein.
Source: Norsk Hydro via Thomson Reuters ONE
- Company Earnings
- Norsk Hydro ASA
- The European Commission