Denmark: A little private equity spur

Author: | Published: 1 Dec 2006
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Recommended firms
Tier 1
Bech-Bruun
Gorrissen Federspiel Kierkegaard
Kromann Reumert
Plesner Svane Grønborg
Tier 2
Accura
Jonas Bruun

Danish M&A had a solid 2006 as moderate investment from private equity firms encouraged steady growth.

The value of completed deals involving a Nordic country rose by 7.4% in the first nine months of 2006 compared to the same period last year, just short of the 8.1% increase experienced by European M&A as a whole.

Deals were overshadowed by 2005's big acquisition – TDC's $16.7 billion takeover by a consortium of private equity investors – the largest leveraged buyout in European history.

Smaller-scale private equity transactions continued to drive M&A in 2006. Unlisted NycoMed acquired Altana Pharma, an Altana spin-off, for $5.8 billion in September, and in August CVC Capital Partners sold DT Group, the building materials retailer, to Wolseley for $2.5 billion.

Medium-sized deals have also dominated the public M&A market. Danske Bank took over Finnish-based Sampo Bank for $5.2 billion in November 2006, while Phonak announced a $2.7 billion deal to acquire GN ReSound.

Phonak was advised in its bid by Bech-Bruun, which is ranked in the first tier of IFLR's recommended firms and had a particularly successful year acting for CVC Capital Partners and announcing the eighth largest number of deals in the Nordic region in the first nine months of 2006.

Optimism is high that 2007 will bring an increase in the number and value of M&A deals in Denmark.