Norsk Hydro ASA, Orkla ASA To Form Joint Venture-DJ

Monday, 15 Oct 2012 01:41am EDT 

Dow Jones reported that Norsk Hydro ASA and Orkla ASA have agreed to join their profiles, building systems and tubing businesses as they react to toughening conditions and prepare for future emerging market growth. The equal joint venture will be called Sapa. Based on 2011 numbers, it would have 47 billion kroner ($8.21 billion) in annual revenue and is expected to yield annual synergies of around NOK1 billion. Completion of the transaction is expected to take place in the first half of 2013, and either party can initiate an initial public offering of the new company after three years from closing, with each party able to retain a 34% holding. 

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