LONDON Norsk Hydro ASA
and Orkla ASA have proposed divesting two extrusions facilities
should the European Commission require it as a condition for
"The European Commission has
expressed preliminary concerns regarding the possible
competitive effects of the intended merger in certain markets,"
Norsk Hydro said late April 18. "The concerns relate to
multiport extrusions in Europe and soft alloy extrusions in the
Nordic region, in this context defined as Norway and
In response to those concerns,
the two companies have proposed selling the multiport
extrusions facility in Harderwijk, the Netherlands, of Orkla
subsidiary Sapa, and Norsk Hydros extrusion plant in
Raufoss, Norway, which would include the companys
affiliated fabrication plant in Vetlanda, Sweden.
"The European Commissions
initial review period will be extended until May 14, 2013.
Provided that it approves the joint-venture transaction subject
to these conditions, a divestment process of the plants will be
initiated," Norsk Hydro said.
The two Oslo, Norway-based
companies agreed to combine all of their aluminum profiles,
building systems and tubing businesses into a 50-50 joint
venture last October (
amm.com, Oct. 15).
The planned joint venture has
been approved by various other regional competition
authorities, including the U.S. Justice Department, but it
awaits approval by the European Commission and Chinese
The deal is expected to be
completed in the first half of this year.
A version of this article
was first published by AMM sister publication Metal