Hydro/Sapa deal complete
3rd October 2017

Norsk Hydro yesterday (Oct 2) announced that its NOK 27 billion acquisition of Orkla’s 50% ownership in Sapa was completed, giving Hydro full ownership in the extruded aluminium business and making Hydro ‘a leading force in the global aluminium industry’.

The company says the acquisition, first announced in July (Read Story) “makes Hydro the only global company in the aluminium industry that is fully integrated across the value chain and markets, and gives Hydro unparalleled strength in technology, R&D, innovation and product development, as well as an unmatched product and service offering to the benefit of more than 30,000 customers throughout the world.”

President and CEO Svein Richard Brandtzæg said: “Today symbolizes the start of our exciting journey as the leading force within the global aluminium industry, fully integrated from bauxite to end-user products and with the best-possible platform for further growth and optionality, innovation and product development, and sustainability and responsibility.”

Sapa will become a new business area within Hydro, Extruded Solutions, and will be headed by Egil Hogna. Hydro will consolidate the Sapa financials in its financial statements starting October 2, 2017. At the same time, Hydro will discontinue reporting Sapa as an equity accounted investment.

Formed as a 50/50 joint venture between Orkla and Hydro in 2013, Sapa has been a highly successful aluminium solutions provider and the world's largest extrusion company. As Hydro’s new Extruded Solutions business area, it will continue to operate with the business units Extrusion Europe, Extrusion North America, Precision Tubing and Building Systems, and has 22,400 employees and presence in around 40 countries.