M&A Trends in Norway H1, 2025

M&A Activity

The Nordics have seen a strong M&A market so far in 2025 (Mergermarket, June 12, 2025). Total deal value in the Nordics is reported to be EUR 47.2 billion across 925 deals, reflecting a 93% year-on-year increase. The Nordic deal count, however, decreased. These numbers are also reflected in available statistics for Norway and Thommessen. During H1 2025, Thommessen advised on 54 deals with a total deal value of MEUR 3,391. This compares to 56 deals with a total deal value of MEUR 2,835 for the same period in 2024. Mergermarket data as of July 7, 2025 shows a total number of reported H1 2025 transactions in the Norwegian market of 455 compared to 469 in H1 2024 (excluding lapsed 2024 transactions).

This year started out fairly strong in Q1, buoyed by optimism from a robust second half of 2024 and expectations for an M&A uptick driven by US investors. However, April and early May were significantly slower due to the tariff turmoil that began on April 1, 2025. The markets recovered robustly during May and June 2025, with high activity in the Norwegian market going into the summer period. In line with these overall market numbers, Mergermarket reported on June 12, 2025 that Nordic multiples are improving from 2024 into H1 2025.

Type of Deals

Mid-market M&A has been the primary driver of activity in the first half of 2025 in both the European and Norwegian markets. So-called "resilient" companies are in demand, i.e. businesses not particularly affected by volatile tariffs and with a local focus. In terms of public M&A, listed takeovers saw a European surge, with 54 takeovers reported as of June 22, 2025; the highest since 2007, according to Mergermarket. This trend has also been apparent in Norway, with a recent example being Frasers Group's bid for the shares in XXL ASA. Corporate carve-outs continue to be a significant deal trend in H1 2025. Notable examples in the Norwegian market include Otovo's sale of its continental subscription portfolio to Swiss Life Asset Managers, where Thommessen advised Otovo. This trend is driven by a variety of factors, including strategic decisions to focus on certain business areas while divest others, desires to restructure balance sheets, the need to fund investments in growing business areas, or to finance expansion into new markets or geographies, including AI investments. As ever, such carve-outs are highly complex and typically attract interest from specialist private equity firms and industrial buyers.

Deal Features

Deals in 2025 typically take longer to complete than usual. The market has experienced "start-and stop" dealmaking to a large extent, with advisors frequently being instructed to put their pens down until revised deal terms can be negotiated. We have also seen deals being aborted due to tariff and geopolitical uncertainties, with sponsors (particularly for larger exits) preferring to delay planned auction processes. Buyers generally continue to be cautious and apply rigorous due diligence processes, especially for businesses exposed to tariff risks. Heightened foreign direct investment (FDI) scrutiny remains on buyers' radar when considering targets and opportunities. Buyers are focusing on cash flow, pipeline, and robustness in a volatile market when assessing targets.

Sectors

Key sectors in terms of activity include energy, technology, media and telecommunications (TMT), software, business services, shipping, financial services, and healthcare. In the energy sector, Thommessen advised DNO in its takeover of Sval Energy and is advising Saipem SpA in connection with the merger with Subsea S.A.. In three healthcare transactions, Thommessen advised BerGenBio ASA in its merger with Oncoinvent ASA, Spinship Diagnostics AS in the sale of an 80% stake to BioMerieux SA, and Navamedic ASA in its acquisition of dne pharma AS. In the financial services sector, Thommessen advised DNB Bank ASA in connection with its acquisition of Carnegie Holding AB. As public spending on defense ramps up in Norway, the defense sector is becoming increasingly attractive for investors. The buzzword is "dual use," where a supplier can demonstrate both military and civilian applications for their products and services. Thommessen recently advised Kongsberg Defence & Aerospace in establishing a new joint venture with Thales, combining Kongsberg's tactical radio and networks business with Thales' crypto and secure communications business in Norway. Finally, the commercial real estate sector has seen some recovery following the stabilization of interest rates and a smaller spread between sellers and buyers, as sellers adjust to a new, sustained higher interest rate regime and lower yields. In this space, Thommessen advised Public Property Invest ASA in its acquisition of a portfolio of industrial infrastructure assets as well as the formation of a joint venture with Resource Group TRG AS (controlled by Aker ASA). Thommessen also advised Centerbridge Partners in their acquisition of Second Space AS (a mini self-storage business).

Sponsor Mindset

Private equity firms are pursuing attractive add-ons and, to some extent, platform investments. In terms of exits, there are signs of increased activity in private equity. For example, Thommessen advised EQT in its divestment of Recover, a Scandinavian property remediation specialist. However, the backlog of private equity exits continues to grow in H1 2025. Sponsors are therefore continuing to develop secondary markets for their holdings through continuation vehicles and minority sales.

Summary

Market players point to a wide range of outcomes in terms of the macro picture for the second half of 2025. Ongoing trade negotiations could slow growth. At the same time, interest rates are going down in Europe. The M&A market in Norway and the Nordics has proven to be resilient in the face of tariff and geopolitical uncertainties. As we enter H2 2025, we note that the Norwegian central bank cut interest rates in June 2025 for the first time since COVID-19. Further cuts are predicted during the fall. In terms of private M&A, particularly mid-market deals with a local focus, H2 2025 looks promising and robust from our perspective. Whether mega deals will return in H2 2025 remains to be seen.