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Hydro and Orkla propose remedies to obtain EU competition clearance for aluminium extrusions JV
OSLO, NORWAY–(Marketwired – Apr 18, 2013) – 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
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
[HUG#1694212]
2013-04-18 11:04:58
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