The Nordic infrastructure sector is set for a major transformation. Netel and Infrea have announced plans to merge their businesses, creating a larger infrastructure services group with annual revenue of around SEK 5 billion. The deal brings together two established companies with complementary strengths and a shared ambition to support growing infrastructure needs across Northern Europe.
Merger Creates a Stronger Infrastructure Business
The proposed transaction will see Netel absorb Infrea through a share-based merger. Once completed, the combined company will operate across several infrastructure segments, including energy, telecommunications, civil infrastructure, and paving services.
Both companies believe the merger will create a stronger and more diversified business. By combining their expertise, customer relationships, and regional presence, they aim to improve their ability to deliver infrastructure projects of different sizes while expanding their reach across Nordic markets.
The merger is designed to create a platform that can benefit from greater scale, broader capabilities, and stronger market positioning in a sector that continues to attract long-term investment.
Shareholders to Receive New Netel Shares
Under the agreed merger terms, Infrea shareholders will receive 17 newly issued Netel shares for every four Infrea shares they own.
Following the completion of the merger, Infrea shareholders are expected to hold approximately 58% of the combined company, while existing Netel shareholders will own the remaining stake. The boards of directors of both companies have approved the merger plan, which remains subject to shareholder approval and customary regulatory clearances.
Cost Savings and Growth Opportunities
Netel and Infrea expect the merger to generate annual cost synergies of approximately SEK 50 million. The companies anticipate these savings through the integration of group functions, improved purchasing efficiency, and the elimination of costs associated with operating two separate listed companies.
In addition to cost benefits, the merger is expected to create opportunities for future revenue growth. The combined business will offer a wider range of services to customers, allowing it to compete for more projects and strengthen relationships across infrastructure markets.
Management believes the larger organization will be better positioned to meet increasing demand for infrastructure development and modernization throughout the region.
Leadership Team for the Combined Company
As part of the merger agreement, Martin Reinholdsson is expected to become Chief Executive Officer of the combined company. Alireza Etemad is expected to serve as Chairman of the Board.
The companies have also indicated that a new corporate name will be introduced before the merger is finalized. The transaction is expected to be completed during the fourth quarter of 2026, subject to shareholder and regulatory approvals.
Netel Plans Capital Raise to Support the Transaction
Alongside the merger announcement, Netel revealed plans for a fully secured rights issue of approximately SEK 127 million. The company has also proposed an overallotment issue of up to SEK 75 million.
If fully subscribed, the fundraising initiatives could provide Netel with approximately SEK 202 million before transaction costs. The company intends to use the proceeds to strengthen its financial position and refinance existing debt obligations.
A Major Step for Nordic Infrastructure
The planned merger marks an important development in the Nordic infrastructure market. By combining their operations, Netel and Infrea aim to create a larger and more competitive organization with the scale needed to support infrastructure investment across Northern Europe.
If approved, the merger will establish a diversified infrastructure platform with broader capabilities, stronger financial resources, and a greater ability to serve customers in multiple infrastructure sectors. The combined company will enter its next chapter with a clear focus on growth, efficiency, and long-term value creation.
