Finnish companies pursue major international acquisitions amid favorable market conditions

Finnish publicly traded companies are making significant moves in the mergers and acquisitions landscape, with a notable trend of domestic firms acting as buyers in international deals. Pekka Hiltunen, head of Finnish investment banking at Danske Bank, observes that many large Finnish companies are focusing on growth within their core markets, shedding non-essential operations.

This strategic focus, combined with favorable market conditions, is fueling the M&A activity. Companies benefit from strong balance sheets, readily available financing, and a stable, reasonable interest rate environment. With Finland's economy showing signs of improvement, the stage is set for a surge in corporate acquisitions, according to Petteri Änkilä, head of large corporates and institutions at Nordea.

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Many large Finnish companies have an increasingly focused strategy and want to grow in their own, carefully selected market.

The Helsinki stock exchange has already witnessed a record year for M&A, with the total value of deals surpassing 30 billion euros. While one massive acquisition accounts for a significant portion of this sum, numerous other substantial transactions have occurred. Notable deals include Kone's 29 billion euro purchase of German competitor TK Elevator (TKE), a record for Finland, despite Kone's market value being lower than the acquisition price. Hiab's acquisition of U.S.-based Labrie for approximately 900 million euros and Terveystalo's purchase of Silmäasema for 574 million euros also represent major moves for the respective Finnish companies.

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When, on top of all that, Finland's economic growth also appears to be picking up, almost everything is set for corporate acquisitions.