StatoilHydro – world?s biggest

The boards of Statoil ASA and Norsk Hydro ASA signed a final plan for a takeover that the companies said will create the world’s largest offshore oil and gas producer.

The new company, to be called StatoilHydro ASA until a permanent name is agreed, will be created by state-controlled Statoil taking over the oil and gas division of its smaller Norwegian rival Norsk Hydro.

In announcing the plan in December, the companies said the $30 billion deal was largely motivated by their will to expand outside Norway and that it would surpass Royal Dutch Shell PLC as the world’s largest offshore oil producer. “The reason for the merger is a mutual desire to create a globally competitive player in the petroleum industry and to be the world’s biggest offshore operator,” a joint news release said.

Hydro’s shareholders would hold 32.7% of the new company and Statoil’s shareholders would own 67.3%. The new company will have about 31,000 employees, including about 5,000 from Hydro. Although the deal requires the approval of both companies’ general assemblies of shareholders, that seemed assured because the Norwegian government owns 71% of Statoil and 44% of Norsk Hydro.

The government would own 62.5% of the new company, and Prime Minister Jens Stoltenberg has said he wants to raise the government stake to 67% to assure two-thirds control.

After the takeover, Oslo-based Norsk Hydro will continue to operate as a light metals and power company.