Norsk Hydro ASA has relaunched a tender offer process for the acquisition of 100 percent of the shares of the Polish recycler Alumetal S.A. 

The tender was previously submitted in April 2022, which later expired during the European Commission's extended review of the merger. The preliminary decision date for the merger is May 23, 2023. The purchase of Alumetal would help Hydro pursue its recycling strategy as demand for recycled low-carbon aluminum grows in Europe. Following the acquisition, Hydro will increase its use of recycled scrap (PCS) by approximately 150,000 tons per year, exceeding the company's 2020 targets of doubling PCS by 2025. 

The acquisition will deliver €63 million in annual EBITDA growth, which in turn will support Hydro's ambition to increase its refining EBITDA by NOK500 million (US$46 million) by 2025 and an additional NOK500 million by 2027. The price of one share in Alumetal SA is PLN78.69 (US$18.87) per share in cash (offer price), which represents an aggregate purchase price of approximately PLN1.230 million (approximately US$295 million). The cost of Alumetal SA is approximately PLN 1.617 million (approximately US$387 million). Dividends of PLN164.5 million (approximately US$39 million) are also due on 27 July 2023.

The subscription period for the tender offer will last until June 2023. Hydro plans to complete the acquisition in early July 2023.