NORWAY Trends and Developments Contributed by: Fredrik Lykke, Christian P. N. Fenner and Magnus Brox, Advokatfirma DLA Piper AS
Advokatfirmaet DLA Piper Norway AS Bryggegata 6 0250 Oslo Norway Tel: +47 24 13 15 00 Email: info@norway.dlapiper.com Web: norway.dlapiper.com
Norwegian M&A: An Overview Approximately 950 transactions were recorded on the Norwegian M&A market in 2025, according to Mergermarket data. As is typical, Q1 was the quiet - est quarter, with activity recovering as the year pro - gressed. Geopolitical and macroeconomic instability – the escalating tariff war – had worsened significantly, putting a brake on deal activity. Transactions picked up once more when tariff deals appeared to have been struck between the US and other countries in Q3 and Q4. That said, transactional parties became uncertain around the impact of the above instability on deal targets, with buyers increasing their risk premi - ums when looking at valuations. Deal processes have consequently taken longer than usual, particularly for bilateral transactions. There have been fewer auctions with several bidders participating up to the finishing line, and more processes starting as auctions tending to end up (or even start) as bilateral processes. Given the difficulties agreeing on valuations and add - ed uncertainty, a higher level of “mitigating” transac - tion structures has been evident – this means sellers retaining a certain ownership percentage, reinvesting in a BidCo structure, or increased use of earn-outs as risk-sharing instruments. Due to the heightened macroeconomic and geopo - litical instability, transaction times have been more drawn out, with several major deals being abandoned prior to signing. The private equity (PE) trend of con - tinuation funds also prevails. On the regulatory front, focus continues on foreign direct investment (FDI) and national security, with fur - ther emphasis on deal certainty with respect to spe - cific buyers.
Private equity players remain active in the Norwegian market and are involved in more than half of large M&A deals (sell side, buy side, or both). A deal exceeding EUR250 million is considered large in the Norwegian market. Although most reportable transactions are between EUR35 million and EUR100 million, an increasing number now represent EUR100 million to EUR400 million and above. Background, and Norway as Place to Invest As a destination for investment, including via M&A, Norway offers the following advantages: • a stable political environment (although uncertainty has increased during recent years, primarily due to tax implementations, particularly on investments); • a huge sovereign fund and zero national debt; • a highly educated population of just 5.5 million; • high taxes and significant public “free” services, such as education and health; • a huge oil and gas (O&G) sector resulting in an advanced O&G service sector; • a strong fishing sector, including a world-leading aquaculture; • a strong shipping sector; • a large and company-owning government; • a government which is by far the largest purchaser of goods and services; • few large domestic private industrialists/investors; • high prices on most things, including labour, com - bined with many of the above, resulting in an early and high uptake of technology; and • a very open economy, with significant export of O&G, fish and other natural resources, and sub - stantial imports of consumer and other goods.
982 CHAMBERS.COM
Powered by FlippingBook