The city council of Oslo (Norway) has approved the ownership restructuring of Hafslund between the City of Oslo and Fortum that was announced in April 2017.
- Fortum will sell its 34.1% stake in Hafslund ASA to the City of Oslo for approximately €730m and will in turn acquire 100% of Hafslund’s power distribution business unit ("Market business area"), which operates in Norway, Sweden and Finland. This will almost double Fortum's number of electricity retail customers in the Nordics, from 1.3 million to 2.4 million.
- In addition, Hafslund’s heating networks business unit ("Heat business area") and the City of Oslo’s waste-to-energy company Klemetsrudanlegget AS (KEA) will be combined into one company, in which Fortum will acquire 50% (50% owned by the city of Oslo) and operational responsibility.
- Finally, Fortum will acquire 10% of Hafslund’s current production business unit ("Production business area").
Hafslund is the largest electricity distribution company in Norway, with 700,000 customers in 2016 (18% of the connection points).
The transactions, worth around €970m, are still subject to one regulatory approval in Norway and the fulfilment of the customary closing conditions. The closing is expected during the third quarter of 2017.