Texaco and Norsk Hydro Form Joint Venture in Norway and Denmark

Texaco and Norsk Hydro announced a joint venture to create a new company for the sale of petroleum products in Norway, Denmark, and the Baltic states. The partnership, scheduled to take effect on January 1, 1995, will be a 50-50 joint venture, with both companies holding equal shares. The new company will combine the partners' established service station networks, positioning it strongly in the Norwegian and Danish markets, with a market share of approximately 20% and 17% respectively.

Key Takeaways:

• The joint venture will have a 50-50 ownership structure between Texaco and Norsk Hydro.
• The partnership will combine the partners' service station networks, holding a strong position in the Norwegian and Danish markets.
• The joint venture will have a market share of approximately 20% in Norway and 17% in Denmark.
• The new company will be responsible for marketing activities and will employ approximately 700 people.
• The partnership is subject to approval by the Merger Task Force of the European Union Directorate General of Competition (DGIV) in Brussels and local governmental authorities.
• The joint venture will have the capacity for future growth in the region and will have a strong presence in markets for lubricants, diesel, and heating fuel.
• The partnership will not affect the partners' other interests in Scandinavia, including exploration and production in the North Sea and the Scanraff Refinery in Sweden.
• Texaco will continue to market its aviation and marine fuels and marine lubricants in Scandinavia.

Statistics:

• Market share in Norway: approximately 20%
• Market share in Denmark: approximately 17%
• Number of employees: approximately 700 people
• Date of joint venture effectiveness: January 1, 1995
• Date of agreement signing: November 29, 1994

Sources:

• BUSINESS WIRE, Nov. 29, 1994