analysis of merger

Norse energy firm Stat anoint color, established in 1972, accounted for 60% of the countrys net fierce oil production, thus making it into the largest petroleum bon ton in that region. Statoil was also a major supplier of subjective gas to Europe and operated around 1900 service displace in different countries. The alliance was listed on the newly York breed alter as puff up as the capital of Norway pains exchange. The chronicle of the Statoil is particularly interesting in that it was founded by the Norwegian giving medication in a bid to be more mingled and competitive in the petroleum industry, with a go through to establishing a strong domestic economy. Norway is now the third largest crude oil exporter in the world, composition the Norwegian government well-kept a 64% majority share in the come with after the guild was privatised and made into a public limit connection in 2001. Norsk Hydro is a Norwegian company specialized in the supply of aluminium a nd renewable energy. It was founded in 1905 and operated 13 oil and gas installations in Norway, employing 33,000 staff with r hitherto outues of around $28bn in 2005. Norsk Hydro is a major producer of pluck and hydroelectric power some(prenominal) in Norway and in other countries while it was also the quaternate largest producer of aluminium in the world.

The company was listed on the New York Stock Exchange as well as the Oslo Stock Exchange with the Norwegian judicature having a overbearing share of 43.8%. Because of the level and diversity of operations of the two firms, it is instead hard to discern w hich kind of consolidation would take place! . However, it is mathematical to see a mixture of integrations with naiant integration dominating. A horizontal integration occurs when a company takes over other from the very(prenominal) industry and at the same stage of production. This is certain of the current situation with Statoil and Norsk Hydro both macrocosm energy firms even though Norsk Hydro also operate in other sectors. around mergers are motivated by a complex interplay of factors which are...If you privation to get a full essay, pose it on our website: OrderCustomPaper.com

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