Mergers & Acquisitions Deal Analysis - DONG Energy to Sell its Stake in Nordkraft and Salten Kraftsamband to Troms Kraft

DONG Energy A/S (DONG) signed an agreement to sell its stakes in Nordkraft and Salten Kraftsamband to Troms Kraft, a power company which operates hydroelectric power plants in Norway. The deal involves the transfer of DONG’s 33.3% stake in Nordkraft AS and its 23.7% stake in Salten Kraftsamband AS to Troms Kraft. The deal was announced on 24th June and is expected to be completed by the end of this year. The total deal is valued at $318.3m. DONG’s 85/15 strategy and the company’s move to reduce its focus on large hydro are the key factors that led DONG to make this deal. On the other hand, increase in the Norwegian electricity spot price and the company’s plans for business consolidation in its territory are the key factors that drove Troms Kraft to enter the deal.

Scope

- The information related to the acquisition by DONG Energy and Troms Kraft.
- A brief on company, DONG Energy A/S, Troms Kraft AS
- Comparison of acquisition deals in renewable energy sector
- Key drivers for the execution of the deal from sell side
- Key drivers for the execution of the deal from buy side

Reasons to buy

- Understand the reasons for the acquisition
- Key drivers for the execution of the deal
- Assists in understanding the dynamics of Troms Kraft in the Norwegian renewable energy markets.