Euronext to acquire control of Nord Pool, a leading physical power
market in Europe, reinforcing Oslo as Euronext’s hub in the Nordics
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EURONEXT TO ACQUIRE CONTROL OF NORD
POOL, A LEADING PHYSICAL POWER MARKET IN EUROPE, REINFORCING OSLO
AS EURONEXT’S HUB IN THE NORDICS
- Euronext to diversify commodities franchise to spot
power trading with acquisition of 66% of Nord Pool’s share
capital
- Nord Pool is the second largest power market in Europe,
offering trading, clearing, settlement and associated services in
both intraday and day-ahead physical markets across 14 European
countries, notably in the Nordic and Baltic regions
- Further strengthening of Euronext in the Nordics with
Oslo as main hub, following acquisition of Oslo Børs VPS earlier
this year
Amsterdam, Brussels, Dublin, Lisbon,
London, Oslo and Paris – 5
December 2019 – Euronext today announced it has entered
into binding agreements to acquire 66% of the share capital and
voting rights of the Nord Pool group1, which runs a leading
physical power market in Europe, operating from its headquarters in
Oslo and offices in Helsinki, Stockholm, Tallinn, Berlin and
London. The enterprise value on a debt-free cash-free basis for
100% is NOK 850m (c.€84 million2). Euronext will enter into a
partnership, governed by a shareholder agreement, with the Nordic
and Baltic Transmission System Operators (TSOs) that currently own
Nord Pool3, and who will retain a 34% stake through a joint holding
company. Euronext is pleased to enter into the power market with
such strong and experienced partners.
Nord Pool group was created in 1993 and offers
power trading, clearing, settlement and associated services in both
day-ahead and intraday physical energy markets. Nord Pool currently
has a strong European foothold with more than 360 customers from 20
countries. The company operates both core intraday and day-ahead
markets in the Nordics, Baltics, the UK, France, Germany, Belgium,
the Netherlands, Austria and Luxembourg. In 2018, Nord Pool
generated c.€40 million4 revenue and 524 TWh were traded on its
markets.
The acquisition of Nord Pool is in line with
Euronext’s strategy to diversify its revenue mix to new asset
classes not correlated with financial market cycles, and will
strengthen its commodity franchise by leveraging Nord Pool’s
leadership position and know-how in physical power markets. This
acquisition marks another major step in materialising Euronext’s
objective to grow its presence in the Nordic region, following the
acquisition of Oslo Børs VPS earlier this year.
Through its strong franchise, Nord Pool will be
a pillar of Euronext's Group centre of excellence for commodities
in Oslo. In turn, Nord Pool will benefit from Euronext’s extended
footprint and commercial efforts in continental Europe to expand
the reach of its leading technology, and its employees will join a
pan-European Group with international career opportunities.
The transaction is subject to regulatory and
competition approvals and the closing is expected in Q1 2020.
Stéphane Boujnah, Chief Executive Officer and
Chairman of the Managing Board of Euronext, said:
“Expanding to the power market is key to
Euronext’s mission of financing the real economy. By joining forces
with Euronext, Nord Pool will be even better positioned to support
the shift to new ways of managing power supply in the face of
climate change and the transition to sustainable growth. This
acquisition is fully in line with Euronext’s ambition to build the
leading pan-European market infrastructure, and further diversifies
the Group revenue into a new asset class, spot power trading,
relying on physical demand for electricity. With its 140 highly
skilled employees, Nord Pool will strengthen Euronext’s objective
to grow its presence in the Nordics and reinforce the center of
excellence for commodities managed from Oslo since the acquisition
of Oslo Børs VPS.”
Kari Ekelund Thørud, CEO of Nord Pool, said:
“I am excited to see Euronext – a strong technology-driven,
European company – become the new majority owner of Nord Pool,
joining the Nordic and Baltic TSOs as a shareholder. With a solid
European footprint, ambitious Nordic expansion plans and deep
exchange technology know-how, Euronext is an ideal partner for us,
complementing the strengths of the Nord Pool organisation. At Nord
Pool we continuously adapt to evolving market demands and strive to
deliver simple, efficient and secure power trading to our
customers.I am sure both customers and partners will see positive
results from Nord Pool becoming a part of the Euronext
family. The transaction will not change the fundamentals of
the power markets where Nord Pool operates – we will continue
to deliver transparency and integrity to the benefit of all market
participants.”
Torger Lien, Chairman of the Board of Nord Pool,
said:
“The current owners, the Nordic and Baltic TSOs, are
pleased to conclude the ongoing strategic review by entering into a
partnership with Euronext for the next phase of Nord Pool’s
development. The transaction is a response to the new industry
regulation allowing for competition among physical power exchanges,
and Euronext, as the new majority owner, is perfectly positioned to
drive the development of Nord Pool in a dynamic market environment
in the Nordics, the Baltics and across Europe. The TSOs will retain
a minority shareholding in Nord Pool, which will continue to be an
important part of the Nordic and Baltic power market
infrastructure, ensuring price transparency and security of
supply.”
CONTACTS -
Media :Pauline Bucaille:
+33 1 70 48 24 41; pbucaille@euronext.com
Analysts & investorsAurélie
Cohen / Clément
Kubiak
+33 1 70 48 24 27; ir@euronext.com
About EuronextEuronext is the
leading pan-European exchange, covering Belgium, France, Ireland,
The Netherlands, Norway, Portugal and the UK. With close to 1,500
listed issuers worth €4.3 trillion in market capitalisation as of
end September 2019, Euronext has an unmatched blue chip franchise
that includes 26 issuers in the Morningstar® Eurozone 50 Index℠ and
a strong diverse domestic and international client base. Euronext
operates regulated and transparent equity and derivatives markets
and is the largest centre for debt and funds listings in the world.
Its total product offering includes Equities, FX, Exchange Traded
Funds, Warrants & Certificates, Bonds, Derivatives, Commodities
and Indices. Euronext also leverages its expertise in running
markets by providing technology and managed services to third
parties. In addition to its main regulated market, Euronext also
operates Euronext GrowthTM and Euronext AccessTM, simplifying
access to listing for SMEs. The Norwegian stock exchange and
its clearing & settlement subsidiary, together operating as
Oslo Børs VPS, joined Euronext on 17 June 2019. For the
latest news, find us on Twitter (twitter.com/euronext) and LinkedIn
(linkedin.com/euronext).
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1 Including Nord Pool AS, Nord Pool Consulting AS and European
Market Coupling Operator AS2 EUR/NOK FX rate of 10.1723 as at 4
December 20193 Statnett (Norway), Svenska Kraftnät (Sweden),
Energinet (Denmark), Fingrid (Finland), Elering (Estonia),
Augstsprieguma tīkls (Latvia) and Litgrid (Lithuania)4 Average
EUR/NOK FX rate over 2018 of 9.5975
- 20191205 Euronext_PR_Nord Pool