Finland

Brick phones will ring in an unlikely revival

19 Dec 2024

Nokia handsets of the early 2000s are appealing to a generation seeking a digital detox. The market, which is only 2% of US devices, is growing fast having doubled in a year. With the likes of Australia banning social media for under-16s, Apple and Samsung may pivot or lose out.

Nordic $5 bln insurer M&A limits cross-border risk

17 Jun 2024

Finland’s $21 bln Sampo is buying Danish rival Topdanmark. Overseas deals can easily go awry, but Sampo is buying a group it already half-owns and paying in shares. More importantly, the target’s current valuation should make it possible for synergies to cover the premium.

Blackstone’s Finnish fiasco adds to property slump

10 Mar 2023

Steve Schwarzman's firm defaulted on a $313 mln securitised loan backed by Nordic offices, after failing to win support from bondholders. More messy workouts are likely as troubled deals come due. It’s an opportunity for savvy players, and another worry for European real estate.

Nordic bidding war is tricky model for LBO revival

25 Jan 2023

Bain Capital and Triton are locked in a battle for $1.2 bln Finnish maintenance firm Caverion. High debt costs make buyouts challenging, but the target has a cheap valuation, a simple turnaround story and green appeal. That combination may not be easy to replicate.

Uniper’s new bailout mixes scars and consolations

21 Sep 2022

Germany’s 8 bln euro capital injection heavily dilutes the stricken energy group’s investors and hands main shareholder Fortum a big loss. The Finnish group does gain from exiting the mess, and Berlin might one day profit from the rescue. But neither side will be celebrating.

Berlin spreads pain in 15 bln euro Uniper bailout

22 Jul 2022

That’s how much equity and debt the government may pump into the gas importer driven to near-bankruptcy by reduced Russian supplies. Diluted shareholders, Finnish owner Fortum, and German taxpayers will share the burden. So will consumers who will pay higher prices for gas.

Finland’s Uniper hit best seen as defence spending

12 Jul 2022

Helsinki wants Berlin to rescue the ailing German energy group, but limit the hit to Finnish owner Fortum. Germany doesn’t agree. Finns would be better off seeing any dilution from a forthcoming capital hike as part of the cost of de-Russifying. Like the cost of joining NATO.

DoorDash’s $8 bln bite supersizes its ambitions

9 Nov 2021

The $64 bln food delivery giant's acquisition of Finnish rival Wolt gives it a foothold in the hypercompetitive European market. The deal looks expensive, and won't obviously boost DoorDash's profit, but it serves up more of what investors are greedy for: growth.

Pricey Finland pulp deal offers paper-thin returns

2 Jul 2021

Shares in 5 bln euro Finnish engineer Valmet fell after it agreed an all-share takeover of valve maker Neles. Although both operate in paper, the modest cost savings on offer suggest CEO Pasi Laine may struggle to generate decent returns. Investors are right to be sceptical.

Akzo’s Finnish paint splurge is no Rembrandt

18 Jan 2021

The European chemicals group bid $1.7 bln for Helsinki-based Tikkurila, trumping an offer from PPG. It comes just three years after the firm led by Thierry Vanlancker fended off a takeover by its U.S. rival. Whoever wins this fight will struggle to gloss over the hefty price tag.

Nokia makes a meal of its Huawei free lunch

29 Oct 2020

The $19 bln telecom giant’s shares slumped after it slashed operating margins. New boss Pekka Lundmark is right to beef up investment to improve its 5G offering as China’s Huawei battles U.S. hostility. But right now Nokia is losing out on new business rather than snapping it up.

Rare creature spotted in Finland: merger of equals

1 Oct 2020

Industrial groups Konecranes and Cargotec are crunching together. Shareholders of each will own half of the new 4 bln euro entity, equally feast on 100 mln euros in annual cost savings, and split the board evenly. Jointly picking the CEO makes for an unusually balanced alliance.

Nordic industrial M&A gets all passive-aggressive

29 Sep 2020

Finnish paper group Valmet has proposed a share-based merger with valve maker Neles but not yet informed its target of any terms. That’s a bit cheeky given the latter already has a decent $2 bln cash bid from Swedish engineer Alfa Laval. Valmet needs to show its hand or go away.

Sampo takes pricey UK joyride with Hastings deal

5 Aug 2020

The Finnish group has made a $2.2 billion offer for the London-listed motor insurer. A 42% premium looks chunky given few cost savings on offer. CEO Torbjorn Magnusson needs to boost revenue in the cut-throat British market and swerve a likely increase in claims to avoid a crash.

Alfa Laval’s $2 bln Finnish deal assumes a lot

13 Jul 2020

The Swedish industrial group’s cash offer for valve maker Neles raises its exposure to carbon-heavy markets. In the absence of as-yet-unquantified synergies, the return on investment looks paltry at less than 4%. Alfa investors who hailed the purchase are taking a lot on trust.

Nokia CEO’s to-do list starts with spring clean

2 Mar 2020

The Finnish telecom-kit maker’s new boss Pekka Lundmark needs to hit the ground running. Improving the 19 bln euro firm’s profitability is the first step. That will help him navigate choppy waters between Washington and Beijing, and prepare for the next wave of software-based 5G.

Kone may hold trump card in Thyssenkrupp endgame

13 Feb 2020

The Finnish lift maker could waive a requirement for its 17 bln euro German elevator bid to hinge on the upshot of antitrust probes. Kone’s plan can fly if it sells any forced disposals to partner CVC. Either way, Thyssenkrupp will find it harder to reject its premium offer.

Uncle Sam’s 5G telecom fantasy is M&A nightmare

7 Feb 2020

Attorney General William Barr thinks the U.S. could buy Nokia or Ericsson to counter China’s Huawei. But making private firms do the state’s bidding is not how America works. Wrapping suppliers in the flag would also destroy value. Selling shareholders would be the only winners.

Nokia misses yawning Huawei open goal

24 Oct 2019

The phone-kit maker’s shares dropped by a fifth as it slashed profit forecasts and cancelled its dividend. Increased competition for 5G networks suggests its Chinese rival is cutting prices. But if Nokia can’t cash in on Donald Trump’s anti-China push, the future looks grim.

New Nordea CEO bets on predictable mediocrity

24 Oct 2019

A 1.3 bln euro charge for defunct IT systems and cost-cutting dragged the $30 bln Nordic lender to a third-quarter loss. New CEO Frank Vang-Jensen’s modest 10% return on equity target is hardly inspiring compared to more profitable rivals in the region. At least it’s achievable.