Transaction highlights

• Binding offer to acquire the Icelandic aluminum factory, Rio Tinto Iceland Ltd (“ISAL”), owned by Rio Tinto, its 53% stake in the Dutch anode, Aluminum & amp; Chemie Rotterdam B.V. (“Aluchemie”), and 50% of its stake in the Swedish aluminum fluoride plant, Alufluor AB (“Alufluor”) for USD 345 million, subject to adjustment upon completion.
• According to French and Dutch legislation, Hydro's offer triggers consultation with Rio Tinto employees and other interested parties. Given the success of the consultations and the approval of the competition authorities of the European Union, the conclusion of the transaction is scheduled for the second quarter of 2018, making ISAL, Aluchemie and Alufluor part of Hydro's global operations. & nbsp;

Strategic reasons

• Reinforces our leading position in Europe: ISAL produces 210 thousand tons of liquid metal and 230 thousand tons of extrusion ingots for the European construction and transportation segments, from its newly built production house. race with capacity for complete ultrasound tests. This will further strengthen Hydro's position as the preferred and leading supplier of extrusion ingots in Europe.

• Renewable energy: Hydro is one of the world's leading producers of aluminum based on renewable energy. With ISAL's 210,000 tonnes of aluminum based on renewable energy, Hydro increases its total primary aluminum production capacity to 2.4 million tonnes in 2018 and its production quota based on renewable energy to more than 70%. < br />
  
  • Integrated value chain: the transaction reinforces Hydro's strategic direction of being a fully integrated aluminum company, with a solid asset base, portfolio flexibility and sustainable global operations.

“The offer demonstrates our strong belief in aluminum, which is experiencing the greatest growth in global demand among common metals. Having a presence in the entire value chain is essential to generate value from this growth and promote sustainable practices in our global operations ", said Hydro President and CEO, Svein Richard Brandtzæg.

Hydro sees synergies regarding technology to increase productivity through technical adjustments, optimization of the anode, freight and treatment portfolio. The Icelandic plant uses the same technological platform as the Husnes plant in Norway, where Hydro recently announced the reopening and technological modernization of the plant's second electrolysis line.

"We see great potential in the exchange of skills and technological elements between our aluminum plants. We are currently operating a technology pilot project in Norway that aims to be the most advanced aluminum production facility. the world in terms of energy and climate. These innovations will cover other Hydro facilities, and as part of Hydro, ISAL will benefit from such complementary effects and technological competencies, "said Hilde Merete Aasheim, executive vice president of Hydro and responsible for the Primary Metal business area.