Finland’s mergers and acquisitions (M&A) landscape has evolved significantly over the decades, shaped by regulatory reforms, economic cycles, and strategic imperatives. This article delves into the unique aspects of Finnish M&A regulations, historical trends, notable deals, and recent activities up to 2025.
Regulatory Landscape: Finland’s Distinctive Approach
M&A activities in Finland are governed by a combination of local laws, Nordic harmonization, and European Union (EU) directives. While Finland aligns with EU regulations, it also incorporates Nordic legal traditions, offering a unique regulatory environment for M&A transactions. This multi-layered approach necessitates careful legal analysis for international M&A strategies in Finland.
Finland’s M&A regulatory framework has undergone notable changes to enhance oversight and align with national interests.
Merger Control Thresholds: Effective January 1, 2023, Finland introduced the “100+10” rule, requiring transactions to be notified to the Finnish Competition and Consumer Authority (FCCA) if:
- The combined turnover of the parties from Finland exceeds EUR 100 million; and
- Each of at least two parties has a turnover from Finland exceeding EUR 10 million. This shift from the previous global turnover-based thresholds focuses on domestic economic impact, bringing more transactions under scrutiny.
Foreign Direct Investment (FDI) Oversight: The Ministry of Economic Affairs and Employment has the authority to review foreign corporate acquisitions that may threaten national interests. It can prohibit such acquisitions or impose conditions, including reducing ownership below 10%.
Remedial Measures: The FCCA has adopted “fix-it-first” remedies, requiring parties to resolve competition concerns before transaction approval. This proactive approach ensures competitive market structures post-merger.
Historical Trends and Strategic Drivers
Since 1985, Finland has recorded approximately 13,966 M&A deals totaling EUR 454 billion. While deal volume peaked in 2021 with 607 transactions, a decline followed, with 578 deals in 2022. In 2023, Finland recorded 265 deals totaling €9.6 billion, marking a 27% decrease in deal count but a significant increase in total value compared to the previous year. The fourth quarter of 2024 showed positive momentum, with 199 transactions—a 57% increase compared to Q4 2023.
Key Drivers:
- Private Equity Activity: An increase in mature portfolio companies and available capital has led to heightened private equity involvement.
- Strategic Consolidation: Companies are pursuing M&A to achieve economies of scale, diversify offerings, and enter new markets.
- Regulatory Changes: Lowered thresholds have brought more transactions under regulatory review, influencing deal structures and strategies.
Historical Overview: Major M&A Deals in Finland
Here are some of the most significant M&A deals involving Finnish companies:
- Nokia’s Acquisition of Alcatel-Lucent (2015): €15.6 billion
- Fortum’s Acquisition of Uniper Stake (2018): €6.5 billion
- UPM-Kymmene’s Acquisition of Myllykoski (2011): €900 million
- Konecranes and Terex Merger (2016): €1.1 billion
- Metso and Outotec Merger (2020): €3.3 billion
- Neste’s Divestment of Nynas Stake (2019): €1.5 billion
- Wärtsilä’s Acquisition of Transas (2018): €210 million
- Kone’s Acquisition of Partek (2002): €1.5 billion
- Stora Enso’s Acquisition of Consolidated Papers (2000): €4.9 billion
- Outokumpu’s Acquisition of Inoxum (2012): €2.7 billion
- Sanoma’s Acquisition of SBS Broadcasting (2005): €2.1 billion
- Elisa’s Acquisition of Saunalahti (2005): €320 million
- Kesko’s Acquisition of Suomen Lähikauppa (2016): €60 million
- Fiskars’ Acquisition of WWRD Holdings (2015): €406 million
- Cargotec’s Acquisition of Navis (2011): €190 million
- Coca-Cola HBC’s Acquisition of Brown-Forman Finland Oy (2023) The acquisition included the Finlandia vodka brand, expanding Coca-Cola HBC’s premium spirits portfolio
- Thermo Fisher Scientific’s Acquisition of The Binding Site (2023): Nordic Capital sold The Binding Site to Thermo Fisher for USD 2.8 billion, marking a significant exit.
Note: The above list includes notable deals; however, specific values and outcomes may vary based on available data.
Recent Developments in Finnish M&A 2024–2025:
In 2024, the Finnish M&A market demonstrated signs of recovery, with deal volumes reaching their highest level since Q1 2023. Decreasing interest rates and improving economic conditions contributed to this positive momentum. Private equity activity is anticipated to increase as market conditions continue to improve.
Notable deals in 2024–2025 include:
- Sampo Oyj’s Acquisition of Topdanmark A/S (2024): USD 4.73 billion
- AMD’s Acquisition of Silo AI (2024): USD 665 million
- Summa Equity’s Acquisition of Fortum’s Recycling and Waste Business (2024): EUR 800 million
- KKR’s Acquisition of Accountor (2024): Undisclosed amount
- Corten Capital’s Acquisition of Roima Intelligence (2024): Undisclosed amount
- Schibsted Media’s Acquisition of TV4 Media, including Finland’s MTV (2025): SEK 6.55 billion
These transactions reflect a strategic focus on digital transformation, technological advancement, and consolidation within the Nordic region.
Successes, Challenges, and Strategic Decisions
The Finnish M&A landscape has seen both successful integrations and challenges:
- Successful Integrations: The merger of Altia and Arcus to form Anora Group exemplifies a strategic consolidation in the beverage industry, aiming for a stronger Nordic presence.
- Challenges: The acquisition of Finnish AI company Silo AI by AMD, while expanding AMD’s AI capabilities, also raised concerns about the transfer of domestic technological expertise to foreign entities.
- Strategic Decisions: Companies have increasingly focused on core operations, leading to divestments and acquisitions that align with long-term strategic goals.
Conclusion
Finland’s M&A ecosystem is shaped by a progressive yet domestically protective regulatory framework. Its emphasis on turnover-based thresholds and FDI screening makes it both open to cross-border investments and cautious about strategic industries.
While historical deals like Nokia-Alcatel and Metso-Outotec have driven long-term value, others such as Fortum-Uniper illustrate the risks of geopolitical and energy market shifts. As of 2024–2025, the Finnish market is seeing renewed momentum, especially in digital, automation, and AI sectors, aligned with global macro trends.
With private equity still active and corporates recalibrating strategies post-COVID and post-energy crisis, Finland remains a compelling, stable, and innovative M&A destination in the Nordic region.