A consortium led by Borealis Infrastructure Management, a division of OMERS, has agreed to buy Fortum Distribution AB for €6.6 billion ($8.9 billion).

Fortum Distribution AB is the second largest player in the electricity distribution market in Sweden. The company distributes electricity to approximately 900,000 customers.

Read: Borealis expands interest in Bruce Power

Borealis Infrastructure has a 50% ownership stake in the consortium. Swedish pension funds Tredje AP-Fonden and Första AP-Fonden will own 20% and 12.5%, respectively, and Swedish insurer Folksam will own the rest.

“On behalf of Borealis Infrastructure, we are very pleased to announce our first investment in Sweden alongside like-minded, long-term Swedish investors,” says Michael Rolland, chief investment officer of OMERS Private Markets. “Fortum Distribution AB provides a strong match for OMERS long-term obligations to our plan members and represents precisely the kind of rare, high-quality asset that fits squarely with OMERS strategy to increase its exposure to infrastructure.”

Completion of the transaction is expected during the second quarter of 2015. The acquisition is subject to customary regulatory approvals.

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Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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