OSLO, NORWAY--(Marketwired - May 13, 2013) - The EU Commission has approved today thetransaction between Norwegian aluminiumcompany Norsk Hydro ASA and branded consumer goods group Orkla ASA to forma50/50 joint venture within aluminium solutions to be named Sapa. Pendingnecessary approval from Chinese competition authorities, the parties expectthetransaction to be completed in third quarter 2013, at the latest.
The transaction has already been approved by the U.S. Department of Justiceandrelevant competition authorities in several other jurisdictions. Thepartiesalso need approval from Chinese competition authorities (MOFCOM), which iscurrently evaluating the transaction.
Due to limited overlap of the parties' operations in China, the partiesexpectthe transaction to be approved. The timing of the approval from MOFCOM isdifficult to determine, but the parties expect the transaction to beapproved inthe third quarter, at the latest.
Approval from the EU Commission is conditioned on the sale of Hydro'saluminiumprofile operations at Raufoss in Norway and its affiliated fabricationplant inVetlanda in Sweden, as well as Sapa's multi-port extrusion (MPE) operationsinHarderwijk in the Netherlands. The parties have started the process todivestthese businesses in line with the Commission's decision.
From June 1 and until closing, Arnstein Sletmoe, who has been appointed CFOofthe new Sapa joint venture, will temporarily head up Hydro's ExtrudedProductsbusiness area. At the same time, Executive Vice President Hans JoachimKock,currently head of Extruded Products, will take over as Head of Finance intheBauxite & Alumina business area and leave the Corporate Management Board(CMB),as previously announced. Sletmoe will report directly to CEO Svein RichardBrandtzæg, but will not be part of the CMB.
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 differmateriallyfrom those projected in a forward-looking statement or affect the extent towhich a particular projection is realized. Factors that could cause thesedifferences include, but are not limited to: our continued ability torepositionand restructure our upstream and downstream aluminium business; changes inavailability and cost of energy and raw materials; global supply and demandforaluminium and aluminium products; world economic growth, including rates ofinflation and industrial production; changes in the relative value ofcurrenciesand the value of commodity contracts; trends in Hydro's key markets andcompetition; 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 forwardlookingstatements, whether as a result of new information, future events orotherwise.
This information is subject of the disclosure requirements pursuant tosection5-12 of the Norwegian Securities Trading Act.
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Source: Norsk Hydro via Thomson Reuters ONE[HUG#1701089]
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