Hydro held a 50-percent ownership share in Vigeland Metal Refinery AS prior to the transaction, and was the sole off-taker of its production of high-purity aluminium.

High purity aluminium is a vital part in semiconductors and several electronic applications such as LCD screens for TVs, computers, cell phones and tablets.

"The metal refinery fits very well into the company's value added product strategy," said Executive Vice President and Head of Primary Metal, Hilde Merete Aasheim.

Executive Vice President and Head of Energy and Corporate Business Development, Arvid Moss, said the acquisition was a good example of cooperation across Hydro's business areas.

"The Vigeland transaction represents a close match with Hydro's overall business model as an integrated aluminium company, comprising an on-site hydropower asset supplying the refinery with electricity," he said.

The transaction will be notified to the Norwegian Competition Authority, and Hydro will also apply to Norwegian authorities for an approval to acquire the hydropower assets in AS Vigelands Brug.

Located in Vennesla at the lower part of the Otra River, the Vigeland Metal Refinery, organized within Hydro's Primary Metal division, has an annual production capacity of 8,500 tonnes of high-purity (99.99-99.999%) aluminium. Located on site, the AS Vigelands Brug "run-on-the-river" power station produces about 180 GWh in a normal year.

Originally established already in 1621 as a saw mill, production of electrical power at Vigeland was commissioned in 1907 and aluminium production started in 1908, making it the longest-running aluminium plant still in operation in Norway.