Hydro Texaco to be taken over by Reitan Servicehandel

July 10, 2006, 08:35 CEST

Hydro has decided to sell its 50 percent shareholding in the gasoline retail chain Hydro Texaco in Norway and Denmark to the Scandinavian retail company Reitan Servicehandel for approximately NOK 1 billion.

Reitan Servicehandel, which operates franchise-based business in the retail sector, takes over the entire operations, a total of more than 750 Hydro Texaco service stations and Uno-X automate stations, of which two thirds are company owned.

The transaction, which also implies that Chevron sells its shares to Reitan Servicehandel, is subject to approval by the authorities in both countries, and is expected to be concluded in the beginning of the fourth quarter of 2006. It is not expected to have any significant effects on Hydro's results.

Hydro Texaco AS is owned 50 per cent by Hydro, and 50 per cent by the US oil company Chevron. The operation includes the distribution, marketing and sale of petroleum products, as well as convenience stores at the petrol stations.

Reitan Servicehandel takes over all Hydro Texaco AS employees – 176 in Norway and 170 in Denmark, including pension liabilities.