Equinor has acquired a 9.8% stake in Ørsted, becoming the second largest shareholder in the company after the Danish State, which holds a controlling stake.
Equinor's ownership position has been built over time, through a combination of market purchases and a block trade.
The current market value of Equinor's holding in Ørsted is around $2.5 billon, based on a closing price on October 4.
Subject to obtaining regulatory approvals under applicable Foreign Direct Investment regulations, Equinor intends to increase its ownership to 10%, the company said.
According to Equinor, it is supportive of Ørsted's strategy and management, and will not be seeking board representation.
"Equinor has a long-term perspective and will be a supportive owner in Ørsted. This is a counter-cyclical investment in a leading developer, and a premium portfolio of operating offshore wind assets. The exposure to producing assets complements Equinor's operated offshore wind portfolio of large projects under development.
“The offshore wind industry is currently facing a set of challenges, but we remain confident in the long-term outlook for the sector, and the crucial role offshore wind will play in the energy transition,” said Anders Opedal, CEO of Equinor.
Ørsted has a net renewable generation capacity of around 10.4 GW, and a gross portfolio of offshore wind projects in execution of around 7 GW.
The company's ambition is to achieve a gross installed renewable capacity of around 35 to 38 GW by 2030.