European Commission approves Macquarie's acquisition of stake in Hydro Rein

Edited By: Mayurakshi Gangul

The European Commission has greenlit Macquarie Asset Management's acquisition of a 49.9% share in Hydro Rein, the renewable energy arm of Norsk Hydro ASA. This strategic move signals a significant development in the renewable energy landscape and underlines the growing importance of sustainable practices in the aluminium industry.

Transaction Approval: The European Commission approved Macquarie's acquisition under the simplified merger review procedure, citing no adverse effects on competition due to non-overlapping markets.

Financial Terms: Macquarie Asset Management will purchase the stake for USD 332 million (EUR 309.2m) in equity, allowing Norsk Hydro to retain a controlling interest of 50.1%.

Joint Venture Formation: Post-acquisition, Hydro Rein will function as a joint venture, boasting a robust portfolio of renewable energy projects totalling 6.9 GW in capacity. These projects are located across Brazil, Denmark, and Sweden, showcasing a diversified geographical presence.

Inclusive Approach: The joint venture will encompass all of Hydro Rein's energy solution projects, with the exception of certain Norwegian onshore wind projects, which Norsk Hydro plans to develop in collaboration with local partners.

The European Commission's approval of Macquarie's stake acquisition in Hydro Rein highlights the industry's commitment to sustainability and renewable energy integration. This collaboration between key players in the aluminium sector highlights the potential for synergy between renewable energy initiatives and aluminium production.