Norsk Hydro completes acquisition of Sapa shares from Orkla

Norwegian aluminium and renewable energy firm Norsk Hydro announced on Monday that it had completed its acquisition of fellow Oslo-based group Sapa by way of an NOK 11.86bn cash payment.

Formed as a joint venture between Orkla and Norsk Hydro in 2013, Sapa had an agreed enterprise value of NOK 27bn, and its four business units employed 22,400 people over 40 countries.

Norsk Hydro said the acquisition made it the only global company in the aluminium industry that is fully integrated across the value chain and markets.

"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," said president and chief executive Svein Richard Brandtzæg.

Hydro said Sapa would be rebranded as its "Extruded Solutions" unit and would be headed up by its existing chief executive Egil Hogna.

The firm said it would consolidate Sapa's financial statements from 2 October.

The transaction was initially financed by the utilization of Norsk Hydro's cash balance and a drawing down on the company's revolving credit facility. Parts of the financing would later be replaced by the issuance of bonds.

As of 1000 BST, Norsk Hydro shares had slipped 0.81% to 545.05p.