Norsk Hydro: Hydro acquires additional 20 percent of Vianode as Altor is exercising put option

Rhea-AI Summary

Norsk Hydro (NHYDY) has announced the acquisition of an additional 20% stake in Vianode, a synthetic graphite manufacturer for the battery industry. This move comes after Altor, a private equity fund, exercised its put option on September 6. The transaction will result in an equal 50/50 ownership between Hydro and Altor. Vianode operates an industrial pilot plant in Kristiansand, Norway, and is expected to complete an industrial-scale production facility at Herøya Industripark by the end of 2024.

The acquisition is pending competition clearance, which is anticipated within 6-8 weeks. Notably, Hydro will incur no additional costs for this acquisition. This move aligns with Hydro's updated 2030 strategy, focusing on successful execution of current investments in its Batteries unit, with future capital allocation depending on attractiveness.

Positive

• Increased ownership stake in Vianode from 30% to 50%, strengthening Hydro's position in the battery materials market
• No additional costs incurred for the acquisition
• Aligns with Hydro's 2030 strategy for the Batteries unit

Negative

• Potential increase in financial commitments due to equal cost-sharing in Vianode's operations and investments

On September 6, the private equity fund Altor has exercised its put option, requiring Hydro to acquire additional 20 percent of Vianode, resulting in equal 50/50 ownership stake for both parties.

Vianode is a synthetic graphite manufacturer for the batteries industry operating an industrial pilot plant in Kristiansand, Norway, since 2021, and is expecting to complete an industrial scale production facility at Herøya Industripark in Norway by end 2024.  

Following Elkem’s exit from Vianode in March 2024, Altor and Hydro remained shareholders with 70 and 30 percents ownerships respectively. The shareholder agreement includes a put-and-call option where each party can require a 50/50 percent ownership and share costs accordingly.

The transaction is pending competition clearance, expected within six to eight weeks. Hydro incurs no additional costs for this acquisition.

According to Hydro’s updated 2030 strategy, Hydro's Batteries unit remains focused on successful execution of its current investments, while additional capital allocation will depend on attractiveness.

Investor contact:  
Martine Rambøl Hagen 
+47 91708918 
Martine.Rambol.Hagen@hydro.com 

Media contact:  
Halvor Molland  
+47 92979797 
Halvor.Molland@hydro.com 

FAQ

What is the new ownership structure of Vianode after Hydro's acquisition?

After the acquisition, Norsk Hydro (NHYDY) and Altor will each have a 50% ownership stake in Vianode, resulting in an equal 50/50 ownership structure.

When is Vianode's industrial-scale production facility expected to be completed?

Vianode's industrial-scale production facility at Herøya Industripark in Norway is expected to be completed by the end of 2024.

How much did Hydro pay for the additional 20% stake in Vianode?

According to the press release, Hydro incurred no additional costs for this acquisition of the 20% stake in Vianode.

What is the timeline for competition clearance for Hydro's acquisition of Vianode shares?

The competition clearance for Hydro's acquisition of additional Vianode shares is expected within six to eight weeks from the announcement date.