12th Jun 2019 10:25
(Alliance News) - Norway's sovereign wealth fund could be forced to sell interests in several major energy and mining companies, Reuters reported Tuesday.
Norway is on Wednesday set to adopt legislation requiring the fund, the world's largest, to no longer invest in firms that mine more than 20 million tonnes of coal a year annual or generate over 10 gigawatts of coal power a year.
The fund has a 2.0% stake in Glencore, Reuters said, which would have to be sold. Other investments that would breach the new rule include 2.2% of Anglo American PLC, worth around USD620 million, as well as stakes in German utility RWE AG and miner South32 Ltd.
https://uk.reuters.com/article/uk-norway-swf-coal/norway-fund-may-have-to-offload-1-billion-stake-in-glencore-in-shift-away-from-coal-idUKKCN1TD0PD
Back in March, the Norwegian government decided its sovereign wealth fund would sell off all its investments in oil and gas companies, with the exception of the state oil producer.
Norway's sovereign wealth fund, formally known as the government Pension Fund Global, is valued at around GBP782 billion and has investments in over 9,000 companies worldwide. It has 341 investments in the oil & gas industry, worth a total of USD37 billion.
Norway's Finance Ministry said at the time the move would reduce the risk to the Norwegian economy from oil price volatility. The move, it stressed, did not reflect any opinion on the future of the oil & gas industry, Norway itself being a major producer from the North Sea.
Related Shares:
Anglo AmericanSouth32Glencore