Norway

Nordic retail robot IPO carries steep price tag

29 September 2021

AutoStore, the SoftBank-backed firm that sells automated warehouses, is listing in Oslo for up to $15 billion. It’s a bet on the boom in online shopping and grocery delivery. Yet the rich valuation relies on breakneck growth in a competitive market and downplays legal risks.

Norway readies fresh round of green air guitar

14 September 2021

The Scandinavian state is on track for a left-wing coalition pledging to do more on climate change after eight years of conservative rule. But rapid cuts to national hydrocarbons output aren’t likely. Given Norway has a $1.4 trln wealth fund, it can afford to go beyond gesturing.

Permira $2 bln deal advertises buyout desperation

14 July 2021

The UK firm is buying 10% of listed classifieds group Adevinta from eBay. It gets a stake at a discount and might make a good return. But investors could make the same bet themselves without ponying up fees. It highlights the challenges private equity groups face deploying funds.

EU chip M&A is politically sound, financially iffy

20 May 2021

Shares in $5 bln Nordic Semiconductor surged 10% on a report that Franco-Italian rival STMicroelectronics may bid for it. A deal would be a logical bet on the trend of having chips in everyday gizmos, and satisfy politicians’ urge to keep key tech in Europe. But returns look low.

Norway’s offices are prize in $3.4 bln bidding war

26 November 2020

Sweden’s Castellum launched an offer for Entra days after the Oslo-based group rebuffed a bid from real estate rival SBB. Reliable government tenants and a relatively stable economy are alluring in a sector ravaged by the pandemic. But the bidders will struggle to create value.

Norway’s $1.1 trln fund is a bad toy for hedgies

24 August 2020

Nicolai Tangen’s appointment as boss of the gargantuan rainy-day fund hangs in the balance. Norwegians mostly worry about the big investor’s conflicts, but his likely approach is a larger concern. Active trading of so much money could pointlessly disrupt global markets.

Seller wins in eBay’s $9 bln classifieds auction

20 July 2020

Norway’s Adevinta, controlled by media conglomerate Schibsted, won the race to buy the U.S. group’s online-listings business, Reuters reported. It may struggle to make a decent return. EBay, however, gets a good price and the chance to gain from likely consolidation in Europe.

Tycoon’s rig empire leaves lenders deep underwater

3 June 2020

Oslo-listed Seadrill, founded by billionaire John Fredriksen, wants to swap its $7.4 bln of debt for equity. A slump in crude prices means creditors will face heavy losses. But, with oil majors retrenching and rigs heading for the scrapyard, a bankruptcy could be even messier.

Norway shines awkward light on Big Oil dividends

23 April 2020

Oslo’s state-owned $42 bln Equinor is slashing its first-quarter payout by 67% after oil prices turned negative this week. Bigger peers like Royal Dutch Shell really won’t want to follow suit and have some leeway not to. But a live example of caution makes it harder to hold firm.

Norwegian Air is lesson in bare-bones bailout

14 April 2020

The airline’s future hinges on creditors swapping $4.3 bln of debt for its nearly worthless equity. That would unlock enough state funds to allow the company to operate as a regional carrier. Its loss-making dream of a low-cost transatlantic revolution is dead whatever happens.

Pre-virus era rule book will lead investors astray

31 March 2020

The market rout means Norway’s wealth fund and other money managers are less exposed to stocks than their ideal purely because shares fell so much relative to bonds. Rectifying the imbalance would unleash equity buying of $500 bln or more. But a return to old norms will be risky.

Exxon Mobil quits North Sea with bags full of gold

27 September 2019

The U.S. oil major is shifting capital from high-cost fields to higher-growth areas closer to home. That’s sensible, and a $4.5 bln price tag for its Norwegian operations is a good exit. It’s some consolation for investors antsy about Exxon’s laid-back approach to climate change.

Southeast Asia joins global telecom M&A hang-up

6 September 2019

Telenor and Axiata ended talks to create a $40 bln regional champion. A complicated structure and Malaysia’s nationalist tendencies eclipsed the allure of big cost savings. The difficulty of merging phone operators around the world presents a growing problem for investors.

Lowball Nordic IT sale gives Apax a better exit

18 June 2019

The buyout firm accepted a lowly 1.3 bln euro cash-and-shares offer for Norwegian computer services firm Evry from Finnish rival Tieto. The measly 15% premium is less than half the value created by cost savings. Still, a 20% stake in the combined group should be easier to sell.

Norwasian telecom deal dials right numbers

6 May 2019

Telenor and Malaysia’s Axiata are aiming to form a regional champion with some 300 mln customers by merging their South and Southeast Asian businesses. Bigger looks better with savings worth some $5 bln expected. Kuala Lumpur might raise an eyebrow at less competition, though.

Nordic $3.2 bln telco deal makes little sense

9 April 2019

Norway’s Telenor is buying a majority stake in Finland’s DNA and will offer to buy the rest for a total price tag of 2.8 bln euros. The financial returns of this odd move into a mature market will be so slim that CEO Sigve Brekke may do better by handing more cash to investors.

Euronext-Nasdaq row tests Norway’s market faith

4 April 2019

The $800 mln takeover battle for Oslo’s stock exchange should reside solely on financial logic. The cash offers are identical. But Euronext wooed more investors. Allowing Nasdaq to tweak the rules of engagement would be a defeat for capital markets, and Norway.

Norway’s mega-fund fluffs move away from crude

8 March 2019

Oslo’s $1 trillion wealth fund will ditch oil exploration stocks, but stay invested in groups that also do refining. As a big producer Norway needs to tread carefully. But accepting the risk of subpar returns could have been a way to show greater climate change leadership.

Battle for Oslo Bors shows bidders’ fatigue

4 March 2019

Nasdaq has hiked its offer for the Norwegian exchange to 158 Norwegian crowns a share, or $788 mln, on a par with an already raised bid by Euronext. Its scale in the region gives it a minor edge. But the face off shows both suitors are already at the limit of financial logic.

Norway’s giant oil fund flaunts Achilles’ heel

27 February 2019

The Nordic state’s $1 trillion wealth vehicle lost money in 2018. A political mandate that obliges it to hold more equities rather than diversifying its exposure explains why. Even if these shackles were removed, the fund’s size complicates efforts to rev up performance.