analysis of merger

Norwegian energy firm Stat anoint color, established in 1972, accounted for 60% of the countrys net petroleum 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 stations in different countries. The alliance was listed on the newly York Stock alter as well as the capital of Norway Stock 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 view to establishing a strong domestic economy. Norway is now the third largest crude oil exporter in the world, while the Norwegian government retained a 64% majority share in the company after the company was privatised and made into a public limited company in 2001.

Norsk Hydro is a Norwegian company specialised in the supply of aluminium and renewable energy. It was founded in 1905 and operated 13 oil and gas installations in Norway, employing 33,000 staff with r even outues of around $28bn in 2005. Norsk Hydro is a major producer of wind 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 Government 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 which kind of integration would take place. However, it is mathematical to see a mixture of integrations with horizontal integration dominating. A horizontal integration occurs when a company takes over other from the same industry and at the same stage of production. This is certain of the current situation with Statoil and Norsk Hydro both being 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, order it on our website: Orderessay



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