The European Commission (EC) has reportedly approved unconditional merger clearance for Hydro's acquisition of the Polish aluminium recycler Alumetal S.A.
In April 2022, Hydro first announced a tender offer to acquire Alumetal with an all-cash transaction worth $240.4 million. But it expired during the phase 2 merger review by the European Commission.
Later on, at the end of April 2023, Hydro resumed the offer process to acquire 100 per cent of the shares in Alumetal. The subscription period is expected to remain open till 2023, and the acquisition is likely to close in early July if all other conditions get fulfilled.
The European Commission's merger clearance approval is one key milestone of the many to complete the acquisition of Alumetal. This deal will strengthen Hydro’s recycling position in Europe and widen product offering in the low-carbon and scrap-based foundry alloy market.
Eivind Kallevik, Executive Vice President of Hydro Aluminium Metal, explained: "The approval from the European Commission is a key milestone toward completing our proposed acquisition of Alumetal. Today we move one important step closer to bring Alumetal into the Hydro family and develop an even broader range of low-carbon products for our customers."
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