Sapa, Alcoa merge aluminum operations

Orkla and Alcoa have signed and closed an agreement merging Sapa's and Alcoa's aluminum profile operations to form a global company called Sapa AB.

The new company will have a market share of 19 percent in Europe and 27 percent in North America. The combined net sales for the new company was US $4.2 billion in 2006. The new Sapa will have approximately 12,000 employees.

Division of ownership in Sapa AB has provisionally been fixed at 54 percent for Orkla and 46 percent for Alcoa. In accordance with the agreement, the final division of ownership interests will be calculated based on Sapa's and Alcoa's respective contributions to adjusted EBITDA for the past 12 months. Final division of ownership will be determined when audited figures for the period are available.

Orkla and Alcoa will have an equal number of representatives on the board of directors of Sapa AB. The board members will consist of Dag J Opedal and Hilde Myrberg from Orkla, as well as Anders G Carlberg as a third representative. Alcoa has appointed Rudi Huber, Barbara Jeremiah, and Paul Thomas. Dag J Opedal will be chairman of the board of Sapa AB.

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