Hydro acquires Sapa

Hydro acquires Sapa

Norsk Hydro has agreed with Orkla to acquire its 50 percent interest in Sapa for a total enterprise value of NOK 27 billion, giving full ownership in the global leader in extruded aluminium solutions and making Hydro a leading force in the global aluminium industry.

The transaction will be financed through cash positions and issuance of bonds in Norwegian and international markets, and will be temporarily funded by committed undrawn credit lines. Following the transaction, Hydro is committed to retain its investment grade rating and a robust balance sheet. Hydro will maintain its dividend policy of returning 40 percent of net income over the cycle, with NOK 1.25 per share seen as a floor in 2017.

The purchase price will be paid in cash at completion, adjusted for net debt and normalised working capital.

Completion of the transaction is subject to approval from relevant competition authorities, and is expected in the second half of 2017.

Union representatives from both companies have been involved in the acquisition process from the very start, making sure the voices of their members are heard. 
Completion of the transaction is expected by second half 2017, pending approvals from relevant competition authorities in Brazil, Canada, China, EU and Turkey.

For more information visit: http://tinyurl.com/yc9vfgyb

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