DOW JONES NEWSWIRES
Norwegian aluminum producer Norsk Hydro ASA (NHY.OS) and
consumer goods conglomerate Orkla ASA (ORK.OS) said Thursday they
would be prepared to make changes to their proposed aluminium
extrusions joint venture to obtain competition clearance from the
European Union.
MAIN FACTS:
-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 their
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.
-Hydro and Orkla expect the planned joint venture transaction,
retaining the company name Sapa, to be completed in the first half
of 2013.
-Write to Charles Duxbury at charles.duxbury@dowjones.com;
Twitter: @DowJonesNordics
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