Equinor Completes Danske Purchase
Norwegian state producer Equinor has completed its €400mn ($460mn) purchase of Danske Commodities (DC), it said February 1, with the receipt of all necssary approvals. DC was set up in 2004 and in 2017 it traded the equivalent of a third of Norway's gas production. The deal was agreed in July last year, with Equinor telling NGW it "ticked all the boxes."
The company is one of Europe’s largest short-term electricity traders and the deal supports Equinor’s development as a broad energy company, Equinor said. DC is also active in short-term gas trading, green certificates trading and provides energy market services.
DC will continue to operate under its own brand but with time it will become operationally and commercially closer to the parent company.
“The acquisition of Danske Commodities strengthens our ability to capture value from our production of renewable electricity and supports our aim to grow in profitable new energy solutions. DC’s market presence and expertise in energy trading complements Equinor’s position as the second-largest supplier of natural gas to Europe and as one of the world’s largest net-sellers of crude oil,” said Equinor’s executive vice president for marketing, midstream and processing, Irene Rummelhoff.
The transaction also includes smaller contingent payments depending on DC’s performance over the next couple of years.