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HSE_CASE_NR: 104-041 | status: active Title: FORTUM Authors: Nainwal, Sandhya Seward, James (supervisor) Gasiorowska, Anna (supervisor) Material: 14 pages Publication year: 2004  Language: eng Keywords: energy & oil industry; international acquisitions; restructuring; spin-off Abstract: Right from the conception of this company, Fortum’s objective was to be one of the leading energy companies in Northern Europe. The major focus was on the Nordic region along with the Baltic Rim. The recent acquisition of Birka energy has enabled Fortum to be the number one energy company in Finland. In 2003 Fortum was considering another restructuring of its business. In order to improve the oil refineries in Porvoo Fortum had the option of selling off the oil business since they were already leveraged at 80%. However, the irony lied in the fact that Fortum was the result of a merger between the power and oil company. Also, Fortum’s CEO believed that with separating the two, the company will be worth much more. The CFO was asked to come up with different options of raising the capital for improvements or to sell off the oil business.