Political Economy


Swedish government was warned about the risk associated with the Dutch Nuon business

Wednesday, 31 July 2013
One of the projects that brought the Swedish energy company Vattenfall to its knees, the Nuon energy deal in Holland was flagged as risky before Vattenfall bought it.  The Swedish government, which owns Vattenfall was told that the deal was not, a very good one but it went ahead anyway.

According to Swedish television reports, consulting firm McKinsey warned the government, according to a classified report the station has seen of the risks associated with the deal of the Dutch Nuon.vattenfall

The report was done by the consulting firm McKinsey, commissioned by the Ministry of Industry. The aim was to investigate the future strategy for Vattenfall. The report has been kept secret since then but now, when Swedish television gained access to it. 

The first page shows that it was presented in a meeting when Maud Olofsson ws still in the ministry of Industry on January 29, 2009, which was three weeks before Vattenfall bought the company - just three weeks before Vattenfall's Skr90 billion purchase became clear.

It reports that the deal could lead Vattenfall to need capital from taxpayers or partial IPO, said Swedish television.
The report pointed also that the "major acquisitions involved risks and does not create value per se," according to SVT.
by Scancomark.com Team

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