Hydro and Orkla propose remedies to obtain EU competition clearance for aluminium extrusions JV
(Thomson Reuters ONE) -
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.
Investor contact
Contact Rikard Lindqvist
Cellular +47 41751199
E-mail Rikard.Lindqvist(at)hydro.com
Press contact
Contact Halvor Molland
Cellular +47 92979797
E-mail Halvor.Molland(at)hydro.com
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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]
Unternehmensinformation / Kurzprofil:
Datum: 18.04.2013 - 17:15 Uhr
Sprache: Deutsch
News-ID 250613
Anzahl Zeichen: 4641
contact information:
Town:
Oslo
Kategorie:
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"Hydro and Orkla propose remedies to obtain EU competition clearance for aluminium extrusions JV"
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