Norsk Hydro SA gained the approval of European regulators for its second proposed purchase of Polish recycling firm Alumetal S.A. late last week.
The second proposal reached the finish line with the European Commission, paving the way for the merger. The first proposal was offered last spring, but it expired during a phase II merger review.
Eivind Kallevik, Executive Vice President of Hydro Aluminium Metal, said in a press release that the buy enhances his firm’s presence in the low-carbon aluminium market share.
“The approval from the European Commission is a key milestone toward completing our proposed acquisition of Alumetal. Today we move one important step closer to bring Alumetal into the Hydro family and develop an even broader range of low-carbon products for our customers.”
The purchase price for Alumetal’s shares totals approximately €267 million (US$294 million). Hydro expects the purchase to raise annual EBITDA by €63 million. The purchase pushes the firm that much closer to reaching its target of increasing recycling EBITDA by NOK500 million (US$46 million) by 2025 and another NOK500 million by 2027.
With regulatory approval in hand, Hydro plans on conducting the subscription period for the tender next month. Assuming conditions precedent are fulfilled, Hydro says the purchase is to be completed in early July.