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Hydro nod for Statoil merger



By Upstream staff 

Norsk Hydro's board has given the go-ahead for the $30 billion sale of the group's oil and gas business to larger peer Statoil, according to reports in the Norwegian media.

Citing unnamed sources, Oslo-based financial daily Dagens Naeringsliv said the widely expected decision to approve the sale, which was announced in December, was made by the Hydro board after a seven-hour meeting yesterday.

"We have not given any information regarding the outcome of the board meeting. We plan to publish a statement later today or possibly tomorrow following Statoil's board meeting (on the same subject)," a Hydro spokesman told the paper.

Dagens Naeringsliv said the plan approved by the Hydro board included more details than the one announced on 18 December.

It stipulates that the combined company's business offices will be in Stavanger on Norway's western coast where Statoil is now based, specifies the number of Hydro employees to be transferred to the merged group, and makes clear that Statoil is the acquiring company, the paper said.

Dagens Naeringsliv said that the board's compensation committee also met yesterday so the board may have also decided on a revised pay package for Hydro boss Eivind Reiten, who will continue to be Hydro's chief executive, as well as becoming chairman of the new group.

The merger, due to be completed by October, will create a world leader in offshore oil and gas production with expected oil and gas output of 1.9 million barrels of oil equivalent per day in 2007.

The new company will initially be called StatoilHydro. Hydro will retain its aluminium assets and continue to be listed on the Oslo stock exchange.


Tuesday, 13 March, 2007, 10:18 GMT  | last updated: Tuesday, 13 March, 2007, 10:18 GMT

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