Norsk Hydro Takes Over Sapa Aluminum JV in $3.2 Billion Deal
July 10 2017 - 1:55AM
Dow Jones News
By Dominic Chopping
Norwegian aluminum producer Norsk Hydro ASA (NHY.OS) will take
full ownership of aluminum products joint venture Sapa after
reaching a deal to buy the 50% of the company it doesn't already
own from partner Orkla ASA (ORK.OS), it said Monday.
The deal values Sapa at 27 billion Norwegian kroner ($3.2
billion) and is in line with Hydro's strategy of becoming an
integrated aluminium company involved in everything from mining to
end-user products.
"The combination will make Hydro the only global company in the
aluminum industry that is fully integrated across the value chain
and markets," it said in a statement.
Synergies are seen at NOK200 million a year and the deal will be
accretive to earnings with strong cash generation immediately,
according to Hydro.
Sapa was formed in 2013 as a joint venture between Orkla and
Hydro, as the companies pooled some of their assets to create a
platform for growth in emerging markets. It has 22,400 employees
and is present in 40 countries.
The purchase price will be paid in cash at completion of the
deal and financed through cash positions and issuance of bonds,
Hydro said.
Completion is subject to approval from competition authorities
and is expected in 2017.
-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@domchopping @WSJNordics
(END) Dow Jones Newswires
July 10, 2017 02:40 ET (06:40 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Orkla A S (PK) (USOTC:ORKLY)
Historical Stock Chart
From May 2024 to Jun 2024
Orkla A S (PK) (USOTC:ORKLY)
Historical Stock Chart
From Jun 2023 to Jun 2024
Real-Time news about Orkla A S (PK) (OTCMarkets): 0 recent articles
More Orkla Asa (PC) News Articles