Morgan Stanley has strengthened its relationship with Fortum, the government-controlled energy group, by advising the company on the Skr14.5bn (€1.5bn) acquisition of a 50% stake in Birka Energi of Sweden from the City of Stockholm.

The US bank's relationship with Fortum dates back several years. In 1998 Morgan Stanley advised on the merger of ImatranVoimay, the electricity company, and Neste, an oil and gas company, to create Fortum. In addition, Morgan Stanley was joint global coordinator alongside UBS Warburg on Fortum's initial public offering later that same year. In 1999 the bank advised Fortum on the sale of Neste Chemicals.