STATOILHYDRO

'StatoilHydro' is the working name of a new company likely to be formed in the 3rd quarter of 2007 by the merger of Statoil with the oil and gas business of Norsk Hydro.^[1] If the plan goes through, the company will be the biggest offshore oil and gas company in the world.^[2] The name is expected to be formally approved at a Shareholders' meeting in 2008.
The merger proposal was announced in December 2006.^[3] Under the rules of the EEA the merger was approved by the European Union on May 3, 2007^[4] and by the Norwegian Parliament on June 8, 2007.² Statoil's shareholders will hold 67.3% of the new company, with Norsk Hydro shareholders owning the remaining 32.7%.⁴ The Norwegian Government, the biggest shareholder in both Statoil and Norsk Hydro is indeed expected to increase its shareholding in the new company from 62% to 67% ^[5]. Jens Stoltenberg, the Norwegian Prime Minister commented that he views the proposal as "the start of a new era. We are creating a global energy company and strengthening Norway’s oil and gas industry."^[6]
It has been noted within the analyst community that a proposal will create an entity with much more competitive strength versus its much larger European rivals, including BP, Total S.A. and Shell, while also increasing the companies ability to make strategic acquisitions, particularly in the Gulf of Mexico.^[7] It will be the ninth largest oil company in the world, and would be the 48th largest company in the world on the current Fortune Global 500 list with a revenue of 480 billion NOK.^[8]
The company's management team is likely to be led by Helge Lund (Statoil's President and CEO) as President and CEO, with
Eivind Reiten former President and CEO of Hydro, likely to become Chairman.³

Contents

See also

References

See also

★ Statoil

★ Norsk Hydro

References

1. StatoilHydro signature unveiled, ''Offshore247'', published 2007-05-10, accessed 2007-06-20
2. [Norwegian Parliament Okays Statoil-Hydro Merger, ''Ocean-Resources'', published 2007-06-11, accessed 2007-06-20
3. Hydro's oil and gas activities to merge with Statoil, ''Norsk Hydro'', published 2006-12-18, accessed 2007-06-20
4. EU regulators approve Statoil, Norsk Hydro merger, ''EU Business'', published 2007-05-03, accessed 2007-06-20
5. The birth of a national energy giant, ''BBC'', published 2006-12-18, accessed 2007-06-20
6. [1]
7. Statoil, Norsk Hydro Create an Energy Behemoth, ''Wall Street Journal'' 2006-12-19, accessed 2007-06-20.
8. [2]