Equinor invests $1 billion in a Danish company affected by Trump's policies
Photo: EPA

Norway's Equinor, one of the largest oil companies in Europe, will spend almost $1 billion to support the sale of Ørsted shares to retain its 10% stake in the Danish company. About this Equinor said on Monday, September 1.

august 11 Ørsted announced an additional share issue of 60 billion kronor ($8.7 billion) to cover the costs of the Sunrise Wind offshore wind farm project in the United States.

Equinor will support Ørsted's DKK 60 billion ($9.4 billion) share issue.

As a result, Ørsted's second largest shareholder after the Danish government, which owns half of the company, intends to support Ørsted amid the US president's attacks Donald Trump for offshore wind energy.

Last month, his administration ordered stop construction an almost completed offshore wind farm in the United States.

The $2 trillion Norwegian Petroleum Fund, one of Ørsted's ten largest shareholders, said on Monday that it would also vote in favor of the rights issue, which would be a boost for the Danish group.

Ørsted shares were up 4.4% in early trading on Monday, while Equinor shares were virtually unchanged, reports Financsal Times.

Ørsted, with a market capitalization of DKK 80 billion, plans to issue its rights after an extraordinary shareholders' meeting on Friday.

Equinor invests $1 billion in a Danish company affected by Trump's policies
Source: Bloomberg

Equinor, which will soon invest DKK 23 billion in Ørsted, has expressed its desire for closer cooperation between the two companies in the future.

"In response to the challenges faced by the offshore wind industry, the industry is looking forward to consolidation and the introduction of new business models. Equinor believes that closer industrial and strategic cooperation between Ørsted and Equinor can create value for all shareholders of both companies," Equinor said in a statement.

Equinor also announced that it will also nominate a candidate to Ørsted's board before the next annual general meeting. This marks a change of course, as the company had previously stated that it would not seek a seat on the board.

Some analysts have suggested that Equinor and the Norwegian state, which is its main owner, would be natural buyers of Ørsted if the Danish government ever decided to sell the company.

Smaller parties in the Danish parliament have called on the ruling coalition in Copenhagen not to use taxpayer money to support Ørsted in the United States.