Equinor (EQNR) Acquires Additional Stake in Scatec for NOK 305M
Equinor ASA EQNR increased its ownership interest in Norway-based renewable energy producer Scatec ASA by acquiring a further 3.1% stake.
Per the deal, Equinor has agreed to pay NOK 305 million.
Equinor has acquired 5 million shares at NOK 61 for each Scatec share. This brings the company’s total equities to 25.8 million shares or 16.2%.
In 2017, Equinor formed a 50/50 joint venture (JV) with Scatec to develop large-scale solar plants in Brazil. This was followed by a second joint project in Argentina in 2018. The companies are also partners in Norsk Hydro’s Rein renewables unit in another solar development in Brazil.
The acquisition is in line with Equinor’s growth strategy within renewables. With the latest acquisition of additional shares in Scatec, Equinor strengthens its exposure to the expanding solar energy sector.
Equinor’s global solar business increased significantly in the last decade. Solar energy is expected to become an important source of renewable power ahead due to its technological efficiency, innovation, and scale effects.
Scatec has an efficient management team and a proven strategy for value creation. Scatec, an integrated independent producer, has a project pipeline and backlog of 16.7 gigawatts across renewable technologies.
The imperative to reduce the consequences of climate change becomes more important with each passing day. Notably, the latest acquisition remains an important investment for Equinor and supports its strategy to create a strong position in renewables to maximize shareholders’ value.
Price Performance
Shares of Equinor have underperformed the industry in the past six months. The stock has declined 22% against the industry’s 4.7% growth.
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Zacks Rank & Stocks to Consider
Equinor currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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