EU Clears Norwegian Orkla To Buy Swedish Sapa

On March 3, The European Commission cleared Norwegian conglomerate Orkla ASA to buy Swedish soft aluminum goods manufacturer Sapa AB.

Orkla is active in branded consumer goods, aluminum solution and renewable energy. While Sapa manufactures soft alloy products for construction, transportation, automotive and engineering industries.

Sapa was initially set up by Orkla together with U.S.-based aluminum producer Alcoa Inc. (AA) which held 45.45% stake of the joint venture. For 100% ownership of Sapa, Orkla is giving Alcoa its 50% equity interest in the aluminum smelting company Elkem Aluminium, making it wholly-owned by Alcoa.

The two stakes are assessed equally on a debt-free basis, and the transaction will have no significant cash flow-related effects for Orkla, the company said in a press release.

By Peppi Kiviniemi, Dow Jones Newswires.