Norsk Hydro ASA — M&A Activity 2018

Sep 14, 2018

Norsk Hydro: Hydro and Rio Tinto end acquisition process for Icelandic aluminium plant ISAL

Norsk Hydro: Hydro and Rio Tinto end acquisition process for Icelandic aluminium plant ISAL

Hydro and Rio Tinto have signed an agreement to end the acquisition process for

Rio Tinto's Icelandic aluminium plant ISAL, including its interests in Dutch

anode facility Aluchemie and Swedish aluminium fluoride plant Alufluor.

In February 2018, Hydro made a binding offer to acquire Rio Tinto's Icelandic

aluminium plant Rio Tinto Iceland Ltd ("ISAL"), its 53% share in Dutch anode

facility Aluminium & Chemie Rotterdam B.V. ("Aluchemie"), and 50% of the shares

in Swedish aluminium fluoride plant Alufluor AB ("Alufluor") for an enterprise

value of USD 345 million.

A Sale and Purchase Agreement (SPA) was signed on 8 June 2018, following

successful consultations with Rio Tinto employees in France and the Netherlands.

The transaction remained subject to a number of conditions, including approval

by competition authorities, Icelandic governmental authorities and commercial

parties. The transaction was initially expected to be finalized in the second

quarter of 2018.

The European Commission (EC) competition approval process has taken longer than

anticipated and remains outstanding. After considering alternative timelines,

outcomes and developments, Hydro requested to terminate the transaction and the

parties have signed a termination agreement. Hydro has withdrawn its EC

competition filing.

Hydro will continue to own 46.7 percent in Aluchemie.

Investor contacts

Contact Stian Hasle

Cellular +47 97736022

E-mail Stian.Hasle@hydro.com

Contact Olena Lepikhina

Cellular +47 96853035

E-mail Olena.Lepikhina@hydro.com

Press contact

Contact Halvor Molland

Cellular +47 92979797

E-mail Halvor.Molland@hydro.com

Cautionary note

Certain statements included in this announcement contain forward-looking

information, including, without limitation, information relating to (a)

forecasts, projections and estimates, (b) statements of Hydro management

concerning plans, objectives and strategies, such as planned expansions,

investments, divestments, curtailments or other projects, (c) targeted

production volumes and costs, capacities or rates, start-up costs, cost

reductions and profit objectives, (d) various expectations about future

developments in Hydro's markets, particularly prices, supply and demand and

competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk

management, and (i) qualified statements such as "expected", "scheduled",

"targeted", "planned", "proposed", "intended" or similar.

Although we believe that the expectations reflected in such forward-looking

statements are reasonable, these forward-looking statements are based on a

number of assumptions and forecasts that, by their nature, involve risk and

uncertainty. Various factors could cause our actual results to differ materially

from those projected in a forward-looking statement or affect the extent to

which a particular projection is realized. Factors that could cause these

differences include, but are not limited to: our continued ability to reposition

and restructure our upstream and downstream businesses; changes in availability

and cost of energy and raw materials; global supply and demand for aluminium and

aluminium products; world economic growth, including rates of inflation and

industrial production; changes in the relative value of currencies and the value

of commodity contracts; trends in Hydro's key markets and competition; and

legislative, regulatory and political factors.

No assurance can be given that such expectations will prove to have been

correct.  Hydro disclaims any obligation to update or revise any forward-looking

statements, whether as a result of new information, future events or otherwise.

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.