News / 21.10.2020

Haavind assists Hydro in the establishment of a new power giant

Author(s) Nicolai Heyerdahl

Congratulations to Hydro and Lyse with the establishment of Lyse Kraft. The establishment of this new power giant marks a new chapter in Norwegian industrial history.

 

The merger between two central players in Norwegian Industry results in a new power giant with  9.5 TWh of renewable energy production in its portfolio, thus becoming Norway’s third largest provider. The merger creates a solid foundation for further development of key players within Norwegian Industry.

-We congratulate Hydro and Lyse with the establishment Lyse Kraft DA. This represents a new and important chapter in the history of the Norwegian Industry, says Haavind partner Aksel Tannum.

Haavind has assisted Hydro throughout the process, with interdisciplinary legal and strategic advice.

-This transaction provides Hydro with strategic access to renewable energy for Norwegian aluminum production in the coming decades, says Haavind partner Bjørn Olav Torpp.

-The energy sector is complex, but by using cross functional expertise from various departments in Haavind, we have contributed to find a good solution and facilitated the collaboration between Hydro and Lyse throughout the process, says Torpp.

Facts about the merger:

  • Lyse and Hydro merge existing power plants in South-West Norway into a new company, where Hydro’s Røldal Suldal Kraft plant (RSK) is merged in with the majority of Lyse’s power portfolio.
  • The new company will be called Lyse Kraft DA and will have a normal production of 9.5 TWh per annum, of which Hydro will own 25.6% and Lyse will own 74.4%.
  • The agreement is expected to realize synergies for the new company, at an estimated worth of NOK 500 million in present value.(Source: Hydro)
norsk industrihistorie