Norsk Hydro and Statoil Seal Deal Over Saga Petroleum Acquisition

Norsk Hydro and Statoil, two of Norway's leading oil companies, have reached a compromise deal that paves the way for Norsk Hydro's takeover of Saga Petroleum, the country's third-largest oil producer. The agreement, which ends a protracted negotiation between the two companies, has been met with skepticism by Saga Petroleum's management, who remain keen on finding a foreign suitor. The deal marks another step in the consolidation of the Norwegian oil and gas sector, with Norwegian industrial interests determined to keep Saga in domestic hands.

Key Takeaways:

Norsk Hydro and Statoil have sealed a deal that gives Statoil 25% of Saga Petroleum's assets in exchange for cash and Statoil's shares in Saga.
The deal paves the way for Norsk Hydro's takeover of Saga Petroleum, which was unveiled earlier this month.
Norsk Hydro will change its original one-for-three share offer to require 70% shareholder approval instead of 90%.
The deal has been met with skepticism by Saga Petroleum's management, who want to find a foreign suitor.
Norsk Hydro has agreed to give Statoil NKr7bn ($891m) worth of interests in certain Norwegian and Irish oil and gas offshore licences.
The compromise solution ends a protracted negotiation between Norsk Hydro and Statoil over which company would acquire Saga Petroleum.

Statistics:

25%: The percentage of Saga Petroleum's assets that Statoil will receive in the deal.
NKr7bn: The value of interests in Norwegian and Irish oil and gas offshore licences that Norsk Hydro will transfer to Statoil.
$891m: The equivalent value of NKr7bn in US dollars.
70%: The percentage of shareholder approval required for Norsk Hydro's takeover of Saga Petroleum.
NKr5: The amount by which Saga Petroleum's shares closed yesterday.

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