Norsk Hydro: Phase II review of proposed acquisition of Alumetal

Rhea-AI Summary

On October 6, 2022, the European Commission initiated a Phase II review of Hydro's acquisition proposal for Polish recycler Alumetal S.A. This review arises from initial concerns identified during the preliminary assessment stage. Hydro launched a tender offer for 100% of Alumetal's shares on April 29, 2022, extending the subscription period to October 10, 2022. However, due to the Phase II review, the public tender offer will now expire before the subscription period concludes. Hydro remains dedicated to collaborating with the Commission throughout this process.

Positive

• Hydro remains committed to acquiring Alumetal, suggesting long-term strategic interest.
• Collaboration with the Commission may strengthen regulatory relationships.

Negative

• The Phase II review indicates potential regulatory hurdles, delaying the transaction.
• The tender offer will expire, impacting shareholder confidence and potential acquisition timeline.

On October 6, 2022, the European Commission decided to open a Phase II review of Hydro’s proposed acquisition of the Polish recycler Alumetal S.A.

A Phase II review is a customary part of the Commission’s merger review process in cases where initial concerns about a transaction’s effects cannot be excluded during the preliminary assessment stage.
           
Hydro announced a tender offer for 100 percent of the shares of the Polish recycler Alumetal S.A. on April 29, 2022. In July 2022, Hydro extended the subscription period to October 10, 2022. Following the Commission’s decision to open a Phase II review, the legal condition of the public tender offer will not be fulfilled before the end of subscription period, and the tender offer will therefore expire.

Hydro remains committed to the transaction and will continue to work closely with the Commission over the coming months on the Phase II review.

Investor contact:
Line Haugetraa
+47 41406376
Line.Haugetraa@hydro.com

Media contact:
Halvor Molland
+47 92979797
Halvor.Molland@hydro.com

FAQ

What is the reason for the Phase II review of Hydro's acquisition of Alumetal?

The Phase II review was initiated by the European Commission due to initial concerns about the transaction's effects.

When did Hydro announce the tender offer for Alumetal shares?

Hydro announced the tender offer on April 29, 2022.

What is the current status of Hydro's tender offer for Alumetal?

The tender offer will expire before the subscription period ends due to the Phase II review.

How long is Hydro expected to work with the Commission on the Phase II review?

Hydro plans to work closely with the Commission over the coming months.

What is the impact of the Phase II review on Hydro's acquisition plans?

The Phase II review may delay the acquisition and raise regulatory concerns.