Norway

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.

Norwegian investors only winners in bourse battle

11 February 2019

Euronext has hiked its bid for Norway’s stock exchange to $785 million. The hefty premium may no longer cover expected cost savings, and does not guarantee a victory against rival bidder Nasdaq. Shareholders in the Oslo exchange are beneficiaries of the larger groups’ largesse.

Germany chooses familiar sin in $4 bln bank rescue

4 February 2019

Regional governments and other lenders are bailing out NordLB. The salvage keeps the sickly bank in public hands, but is costlier for taxpayers than other options, like hitting bondholders. The old-school bailout reinforces the case for consolidation in Germany’s banking system.

Nasdaq’s Oslo Bors assault has Nordic edge

30 January 2019

The U.S. group is spoiling Euronext’s party with a $770 mln cash bid for the Norwegian bourse. The new offer carries a sweetener of just 5 pct but has the backing of two big local investors. Nasdaq’s larger presence in the region could sway investors and mean bigger synergies.

IAG is surprise first loser in airline fuel casino

24 January 2019

The BA owner is set to sell its stake in Norwegian Air. When IAG bought in last April, higher oil prices made it plausible that its unhedged smaller rival would become vulnerable to a takeover. As it happens, a sharp fall in crude values means the egg is instead on its own face.

LSE Nordic raid would be expensive complication

24 January 2019

The London Stock Exchange is mulling a bid for Oslo Bors, says the Evening Standard. The Norwegian group is already the target of a pricey offer by Euronext, and LSE’s links with it limit cost savings. The takeover would be a costly distraction from bigger issues, like Brexit.

Norwegian $800 mln oil swoop succeeds if it fails

8 January 2019

DNO, chaired by Bijan Mossavar-Rahmani, offered a low price for Faroe Petroleum. Investors could reject the bid, but the magnate likes to control companies with minority stakes, and already owns 31 pct of the North Sea driller. Any hopes for a big bump may be disappointed.

Euronext gives Oslo bourse surprise Christmas gift

24 December 2018

The pan-European group is ready to pay 625 mln euros for the Norwegian exchange. The festive offer already has the support of nearly 50 pct of investors. In the consolidating world of electronic trading, it’s getting harder to play alone. Accepting the holiday hamper makes sense.

Norway power failure a rehearsal for bigger shocks

14 September 2018

The 114 mln euros Einar Aas lost betting on energy markets was not enough to sink the clearing house backing the trades. But the damage wreaked by one man implies deeper frailties. An increasingly volatile carbon price would make the commodities market vulnerable to a repeat.

Blackstone’s Baltic push can defy sketchy optics

13 September 2018

A consortium led by the buyout group is buying 60 pct of Baltic bank Luminor for 1 bln euros. It’s oddly timed, given high-profile money-laundering cases have tainted the local market. But Luminor looks cleaner than most and offers some cost-cutting opportunities.

Norway’s anti-plastics push has firm foundations

6 September 2018

Oslo’s $1 trillion wealth fund wants its investments to flag what they’re doing on ocean pollution. As a recent spat over oil and gas holdings shows, political meddling means good intentions don’t always translate into action. That should be less of a problem this time around.

Norway and Saudi face two sides of same problem

24 August 2018

Oslo’s $1 trillion wealth fund wants to shed its oil and gas stocks, but a cautious government may not let it. Riyadh’s $250 billion equivalent wants steady growth, but the state may push it into leveraged, risky ventures. Both need more independence, and less political meddling.