Var Energi accelerates in the North SeaThe Norwegian oil and gas company, 63% owned by Eni, has agreed the acquisition of competitor BlueNord through a transaction worth approximately 12,8 billion Norwegian kroner (approximately 1,1 billion euros) in cash and shares. “This transaction represents a significant milestone in Var Energi's growth journey, creating the largest independent oil and gas producer in Europe, with a long-term production target of approximately 450.000 barrels per day,” said Var Energi. Var Energi CEO Nick Walker.
The merger between the two companies will allow Var Energi, which operates in Norway, to integrate BlueNord's operations in the Danish North Sea sector into its portfolio, a highly synergistic area that increases exposure to European gas markets and expands access to key gas infrastructure in Europe.
The details of the operation
The boards of directors of Var Energi and BlueNord have approved the merger, deeming it to be in the best interests of both companies and their respective shareholders, according to a statement. The closing is expected by the end of the year.
The transaction will be implemented through the creation by Var Energi of a new subsidiary that will be merged with BlueNord. BlueNord shareholders will receive, as consideration, 248,4 million new Var Energi shares and NOK 1.964 million ($204 million) in cash, equal to 9,7153 Var Energi shares and NOK 76,83 in cash for each share held in BlueNord.
Once the transaction is completed, current Var Energi shareholders will hold approximately 90,95% of the outstanding shares, while BlueNord shareholders will hold the remaining 9,05%. Post-merger, Eni will remain the majority shareholder long-term strategic investment with a stake of approximately 57,33% in the combined group.
Var Energi increases its dividend, generating €250-300 million in synergies for the 2027-2032 period.
Var Energi expects the transaction to have a positive impact on earnings per share, production, reserves, operating cash flow, and free cash flow, while also increasing its dividend distribution capacity over time.
The company has in fact announced that it intends to increase the dividend for the second quarter of 2026 to $350 millionThe coupon for the period will be paid exclusively to current shareholders of Var Energi, which also intends to distribute a dividend of $350 million for the third quarter of 2026 to the shareholders of the company resulting from the merger.
The Norwegian company also plans cumulative synergies, after taxes, of $250-300 million for the period 2027-2032, primarily driven by lower financing costs, lower overhead costs and access to the company's balance sheet, which has a high investment grade rating.
Var Energi reports record results in the second quarter
Meanwhile, Var Energi has published record results for the second quarter, which closed with pre-tax profit of $2,42 billionNet operating cash flow (CFFO) stood at $2,1 billion, net debt decreased to $3,4 billion, and the leverage ratio was 0,4x. During the period, the company recorded production of 376 barrels per day, supported by contributions from upstream assets and favorable prices.
