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Norsk Hydro agrees to sell packaging unit to Alcan

The Norwegian conglomerate Norsk Hydro, active in oil, metals and fertilizer, says it has agreed in principle to sell VAW Aluminum's Flexible Packaging unit to the Canadian aluminum company Alcan for 345 million euros (dollars).

The Norwegian conglomerate Norsk Hydro, active in oil, metals and fertilizer, said Friday it had agreed in principle to sell VAW Aluminum's Flexible Packaging unit to the Canadian aluminum company Alcan for 345 million euros (dollars).

The sale is part of Norsk Hydro's previously announced program of disposing of non-core businesses. "This deal values the Flexible Packaging unit, including minority interests, at 415 million euros ...," Norsk Hydro said.

"The transaction is not expected to produce significant gains or losses for Norsk Hydro, with the exception of possible currency effects at the time of takeover," it noted. Including this latest deal, Norsk Hydro has so far disposed of businesses worth more than 830 million euros since it announced its non-core disposal program.

Norsk Hydro acquired VAW Aluminum, an affiliate of the German energy group E.ON, in January for 3.1 billion euros and said at the time that its flexible packaging unit would not be considered a core activity.

Norsk Hyrdo shares gained 0.53 percent on the Oslo exchange to 285.50 kroner following its announcement Friday, bur/nh

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