Equinor has completed the acquisition of a 10% shareholding in Denmark based Orsted, thereby making it the second largest shareholder. It is the second largest stakeholder after the Danish state which maintains a controlling stake in Orsted.
The acquisition was completed after obtaining all necessary approvals under Foreign Direct Investment regulations. Equinor bought an additional 0.2% stake, amounting to 840,764 shares, to attain the 10% ownership.
Equinor’s Energy Goals
This acquisition is in line with Equinor’s strategic push to increase its renewable energy presence. It takes Equinor closer to the realization of its transition energy goals. Since Orsted is a global leader in renewable energy, this partnership strengthens Equinor’s offshore wind portfolio.
This investment by Equinor manifests the involvement of this company in renewable energy. Due to this tie up between the two companies, the two businesses will become much better positioned to service this increasing demand for a solution in renewable and increase the synergies.
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The stake increase in Orsted solidifies Equinor’s influence as a prominent player in the regonal energy domain. The acqusition highlights where the company’s focus is and how it is focused on driving global energy transition efforts. The company intends to do this by expanding its market share in offshore wind energy.
The partnership is going to deliver long term benefits for both companies and supports their shared vision for a sustainable future.
The increase in its stake in Orsted, marks a milestone for Equinor in its goal of becoming a leader in the renewable energy domain. Through strenghtening of ties with Orsted, Equinor is slowly positioning itself to contribute significantly to the global energy transition.
Synergies Between Equinor and Orsted
Orsted, which leads in the renewables sector, will complement Equinor’s strategy of diversification and growth of its renewable business. This partnership is meant to unlock innovation and growth prospects in the global renewable market.