The Commission approved the proposed creation of a joint venture providing aluminium extrusions between Norsk Hydro ASA (“Hydro”) and Sapa Holding AB (“Sapa”), a wholly-owned subsidiary of Orkla ASA. Hydro, of Norway, is a global supplier of aluminium with activities throughout the value chain, including the production and sale of primary aluminium, soft-alloy extrusions, building systems and flat-rolled products. Sapa, also of Norway, is active in the aluminium, hydro power and financial investment sectors. The joint venture will be the world's leading aluminium extrusions provider. The Commission’s market investigation revealed that the proposed concentration, as initially notified, would have raised competition concerns in the market for multiport extrusions (MPEs) and soft-alloy extrusions in the EEA and in the Nordic Region (Norway and Sweden). For MPEs, the Commission’s concerns were based on the very large combined market share of the merged entity, the absence of fully substitutable replacement products and the presence of only two other alternative suppliers in the EEA. For the soft-alloy extrusion market, the market investigation revealed that customers in the Nordic Region have limited possibilities to switch suppliers due to the presence of few alternative producers, higher transportation costs compared to the rest of the EEA and relatively low imports from other parts of the EEA. To address the Commission’s concerns, the parties offered to divest Sapa's entire MPE business in the EEA and Hydro's largest soft-alloy extrusions plant in Norway. In view of these commitments, the Commission concluded that the creation of a joint venture will not significantly impede effective competition in the EEA or in any substantial part thereof. Source: Commission Press Release 13/5/2013