Vår Energi and BlueNord have agreed to merge their businesses in a transaction approved by the boards of both companies.
The deal will add BlueNord’s producing assets on the Danish Continental Shelf to Vår Energi’s portfolio, increasing production, reserves and cash flow while strengthening its position as a supplier of oil and gas to Europe.
Under the agreement, BlueNord shareholders will receive 248.4 million newly issued Vår Energi shares and NOK 1.96 billion (about USD 204 million) in cash.
Vår Energi expects the combination to generate post-tax synergies of USD 250-300 million between 2027 and 2032 through lower financing and operating costs. The company also said the transaction is expected to enhance its long-term dividend capacity.
The transaction will be structured as a statutory merger between a wholly owned subsidiary of Vår Energi and BlueNord.
The transaction will be financed through the issuance 248.4 million new Vår Energi shares (representing a share issue of 9.95%), to be resolved by the Vår Energi board under the existing authorisation granted by the 2026 annual general meeting and a cash consideration of NOK 1,964 million (USD 204 million). Following completion, existing Vår Energi shareholders are expected to own approximately 90.95% of the shares outstanding, while BlueNord shareholders are expected to own approximately 9.05% of the shares in Vår Energi. Eni will remain long-term strategic majority shareholder with approximately 57.33% ownership post transaction.
The merger remains subject to shareholder and regulatory approvals.
Nick Walker, Chief Executive Officer of Vår Energi, comments:
“This transaction marks a significant milestone in Vår Energi’s growth journey, creating the largest independent producer of oil and gas in Europe with a long-term production target of approximately 450 thousand barrels per day and reinforcing our role as a reliable and secure supplier of energy to Europe.
As Vår Energi continues to grow it is a natural evolution of our strategy to step outside of Norway, and Denmark offers a low risk, stable operating and fiscal regime, with similar characteristics to the NCS. BlueNord brings high-quality, long-life assets on the Danish Continental Shelf with stable production, limited near-term investments and strong cash flow generation.
Together, we are creating a stronger, more diversified company with increased scale, resilience and cash generation. The combination increases production, reserves and resources, underpinning our ability to deliver long-term value to our shareholders and we look forward to welcoming BlueNord’s shareholders to Vår Energi’s enlarged shareholder base.”
Carlo Santopadre, Chief Financial Officer of Vår Energi adds:
“The transaction is expected to be accretive to Vår Energi’s cash flow from operations after tax and free cash flow per share, while increasing our long-term dividend capacity. It adds resilient cash generation and portfolio diversification, delivers meaningful synergies, increases the share free float and creates additional commercial opportunities for value creation across an enlarged portfolio.”
