March 13, 2015 - Assignment

Swedish-Canadian consortium acquires Fortum’s electricity distribution business in Sweden for approx. EUR 6.6bn

A consortium consisting of Swedish national pension funds Första AP-fonden (AP1), Tredje AP-fonden (AP3), Swedish mutual insurance and pension savings company Folksam, and Borealis Infrastructure, an international investor in large-scale infrastructure projects backed by OMERS, one of Canada’s largest pension plans, has agreed to acquire Fortum’s electricity distribution business in Sweden for approximately EUR 6.6 billion. Completion of the transaction is subject to regulatory approval as well as customary closing conditions.

Fortum’s electricity distribution business in Sweden owns and operates approximately 71,000 km of electricity distribution and regional networks and distributes electricity to some 906,000 customers. Fortum’s market share of the local electricity distribution in Sweden is approximately 17%.

The consortium members have over 20 years of combined experience in the acquisition and management of infrastructure assets and has a strong Swedish presence with AP1, AP3 and Folksam owning 50% of the shares.

Mannheimer Swartling acted as lead advisor to the consortium in the transaction. The firm’s team consisted primarily of Adam Green, Mattias Karlsson, Jonas Lagerroos, Marcus Glimberg, Henrik Johansson, Evelina Anttila and Sophie Kastengren (M&A), André Andersson, Daniel Khayyami and Joakim Skarph (financing), Hans Andréasson and Sara Varda St Vincent (regulatory), Klas Wennström (real property), Johan Carle, Jens Agö and Daniel Kim (competition) and Christian Hallberg (separation matters).