OSLO, Norway - Norsk Hydro ASA, an energy and aluminum supplier, announced Monday the sale of its polymers business, Kerling ASA, to UK–based chemicals company, INEOS, for about $907.8 million.
The transaction is expected to be completed in the third quarter of 2007.
The sale is part of Hydro’s strategy to focus on aluminium and power production and divest non-core assets.
INEOS' acquisition of Hydro will allow the company to continue its growth in the polymers market, said INEOS’ Chief Executive, Jim Ratcliffe.
Kerling, which employs about 1,200 people, also has interests in joint venture petrochemical operations, including the ethylene cracker at Rafnes Norway, operations in Qatar and China as well as a stake in the Portuguese PVC producer CIRES.
INEOS has 68 manufacturing facilities in 17 countries, employs approximately 15,000 and has annual sales of more than $33 billion.