The unit makes forecasts for ships in international traffic, which helps them to avoid storms and to choose routes that save fuel. It has been around for more than 30 years and in recent years has had revenues of SEK 43-49 million per year, according to Dagens Nyheter, which was the first to report on the deal.

In May, SMHI's Director General Rolf Brennerfelt decided to discontinue Shipping. The motivation was that the unit had made a loss in the past year and that large development costs are required to make it profitable.

Sold to newly formed company

The unit was sold to the newly formed company Gale Force AB for SEK 5.5 million. The owner Tom Sandberg was previously head of Shipping for 14 months and left SMHI as late as April.

- SMHI made a decision to close down the business. After doing so, they asked me if I was interested in entering into a takeover dialogue. After some thought, I said yes, because I think there is potential in the system and the product, he says to Dagens Nyheter.

Several potential buyers

The deal was carried out without bidding and without external valuation, despite the fact that according to DN there are several other possible stakeholders, both in Sweden and abroad. According to Brennerfelt, a bidding could have scared away customers, which they wanted to avoid.

Björn Skarp, a lawyer at the Procurement Authority, says that SMHI may have sold at a discount, which in that case counts as illegal state aid. If the European Commission concludes that SMHI has violated the law, SMHI must reclaim the support from the buyer.

- It affects the beneficiary, in this case the company that has been allowed to buy the business. The Commission is then likely to calculate the difference between the market price and the price paid. The beneficiary is also obliged to pay interest on the illegal support, Skarp tells Dagens Nyheter.