The Norwegian Ministry of Petroleum and Energy has approved Brazilian Vale's planned takeover of 22 percent of the shares in Hydro, Norwegian global producer of aluminum and aluminum products.
The sale is part of the agreement under which Hydro buys Vale's alumunium assets. The concession is unconditional.
Vale's takeover of shares in Hydro triggered the need for a licence according to Norwegian industrial concession law, as Hydro is a power producer with waterfall rights in Norway. The Ministry approval is in line with the conditions for the agreement.
For Hydro the agreement combines the majority of Vale’s bauxite, alumina and aluminium assets with Hydro’s existing business.
A Hydro press release earlier this summer states that the transaction transforms Hydro into a fully integrated global aluminium company securing the company's bauxite supplies in 100-year perspective.
The transaction remains subject to customary approvals in Brazil and is expected to close in the fourth quarter this year.