Statnett buys Hydro’s power network

Statnett and Norsk Hydro have entered into an agreement in which Statnett will purchase a substantial part of Hydro’s Norwegian power lines and transmission system from January 1, 2001. In total, the agreement covers over 400 kilometers of power lines and a number of junctions on the grid, as well as transformer stations and coupling stations. As part of the deal, Statnett’s subsidiary,
Statnett Entreprenør, will offer positions to six Hydro employees.

Most of the power lines and other systems Statnett is taking over are so-called central network installations. Most of these are in the counties of Sogn and Fjordane and Rogaland. The pre-tax financial gain from the sale of around NOK 180 million (EUR 22.2 million) will be booked in the first quarter of 2001.

The sale contributes to Hydro's ongoing strategy of concentrating on core activities.

Final completion (closing) of the transaction contemplated herein is subject to satisfaction of certain conditions precedent.