Equinor is to buy Danish energy trading company Danske Commodities for €400m, plus other payments depending on the latter’s performance in the next few years.
The Norwegian energy giant, formerly known as Statoil, said the acquisition “supports Equinor’s move from being an upstream oil and gas company to becoming a broad energy company”.
Danske Commodities is active in the short-term electricity and gas markets, as well as providing energy market services.
It is based in Aarhus, Denmark, and has 284 employees.
Danske Commodities traded 318 terawatt-hours of electricity across 37 countries last year and 389TWh of gas across 18 countries.
Equinor executive vice president for new energy solutions Irene Rummelhoff said: “This transaction will strengthen our ability to capture value from our current and future equity production of renewable electricity and supports our aim to grow in new energy solutions.
“We see excellent opportunities to develop our collective understanding of various national markets in a world where renewables to a larger and larger degree will be exposed to market risk.”
Danske Commodities chief executive Henrik Lind (pictured, left) said: “Under Equinor’s ownership Danske Commodities will benefit from a stronger financial position and a portfolio of gas and renewable assets across Europe that can be optimised in the short-term dynamic market and give us further trading opportunities.”
Equinor said the deal is still subject to certain conditions, including European Commission approval.
Image: Henrik Lind (left) with Tor Martin Anfinnsen, Equinor senior vice president marketing and supply (Thomas Priskorn/Priskorn)
Equinor makes Danish trade
By EBS