Uchenna Izundu
International Editor
LONDON, Mar. 14 -- Directors from Statoil ASA and Hydro ASA have signed the final plan to break up Hydro so that its petroleum section can join Statoil, signaling that StatoilHydro ASA, the newly formed company, will start operations later this year as anticipated.
The merged company will be the world's largest offshore operator with combined production of 1.9 million b/d of oil in 2007 and proven oil and gas reserves of 6.3 billion boe. It will have 31,000 employees, of which 5,000 will come from Hydro.
Hydro's shareholders will own 32.7% and Statoil's shareholders will own 67.3% of StatoilHydro. "As recompense for the transfer of Hydro's petroleum division, Hydro's shareholders will receive a 0.8622 share in the merged company for every share they own in Hydro," Statoil and Hydro said.
The companies added that "the merger is a growth-oriented response to the challenges facing the industry, that strengthened international competitiveness will be achieved and long-term growth secured on the Norwegian Continental Shelf."
Shareholders will receive merger proposals for approval at the extraordinary general meetings of Statoil and Hydro later this quarter.
Contact Uchenna Izundu at [email protected].
