In 1994, Texaco's System3 gasolines were replaced by new CleanSystem3 gasoline for improved engine performance. In 1995, Texaco merged its Danish and Norwegian downstream operations with those of Norsk Hydro under the new brand HydroTexaco. This joint venture was sold in 2007, to Norwegian retail interests as YX Energi, following the purchase of Hydro by Statoil. Texaco Canada Petroleum was merged into the parent in 1995. In 1996, Texaco paid over $170 million to settle racial discrimination lawsuits filed by black employees at the company. It was the largest racial discrimination lawsuit settlement in the U.S. at the time, and was particularly damaging to Texaco's public relations when tapes were released containing ethnic slurs used repeatedly by company officers at high-level corporate meetings.