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Norsk Hydro and Sapa complete aluminum extrusion joint venture
Edited by : AL CIRCLE
2 min read
The transaction to combine Norsk Hydro's aluminum extruded products business area and Orkla's Sapa into a 50:50 joint venture has been completed as planned, the two Norwegian companies said Monday.
Last October, the two companies announced a proposed joint venture which would own and operate the soft-alloy extrusion businesses of each of Orkla's wholly owned subsidiary, Sapa Holding, and Hydro, including their respective building systems and precision tubing activities.
The agreement covers all of Hydro's extruded products businesses, and Orkla's profiles and building system, and extruded and welded tubes businesses currently operating under its Sapa unit.
In May, the European Commission approved the deal subject to the divestment of certain assets -- Hydro's aluminum profile operations at Raufoss in Norway and its affiliated fabrication plant in Vetlanda in Sweden, as well as Orkla subsidiary Sapa's multi-port extrusion operations in Harderwijk in the Netherlands.
With the last outstanding approval from the Chinese competition authority MOFCOM secured last month, the transaction was completed on September 1.
The combined company, Sapa AS, has 23,000 employees and will be "the new global leader in extruded aluminium solutions," the companies said, adding: "The new joint venture has leading positions in Europe and North America, and strong footholds in emerging markets such as Brazil, China, India and Vietnam."
Last October, the two companies announced a proposed joint venture which would own and operate the soft-alloy extrusion businesses of each of Orkla's wholly owned subsidiary, Sapa Holding, and Hydro, including their respective building systems and precision tubing activities.
The agreement covers all of Hydro's extruded products businesses, and Orkla's profiles and building system, and extruded and welded tubes businesses currently operating under its Sapa unit.
In May, the European Commission approved the deal subject to the divestment of certain assets -- Hydro's aluminum profile operations at Raufoss in Norway and its affiliated fabrication plant in Vetlanda in Sweden, as well as Orkla subsidiary Sapa's multi-port extrusion operations in Harderwijk in the Netherlands.
With the last outstanding approval from the Chinese competition authority MOFCOM secured last month, the transaction was completed on September 1.
The combined company, Sapa AS, has 23,000 employees and will be "the new global leader in extruded aluminium solutions," the companies said, adding: "The new joint venture has leading positions in Europe and North America, and strong footholds in emerging markets such as Brazil, China, India and Vietnam."
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