The German government finalizes an agreement to nationalize gas giant Uniper SE as Berlin tries to avert a collapse in the country’s energy sector.
According to people familiar with the situation, a preliminary agreement has been reached between the government, Uniper and its main shareholder, Finland’s Fortum Oyi. While the deals have not yet been signed, Berlin is aiming for an announcement later this week.
The government is considering buying Fortum’s majority stake at a relatively low price and would then inject billions of euros into the company via a capital increase. A Fortum spokeswoman declined to comment during the ongoing negotiations.
There was no immediate comment from either the Finnish or German governments.
Soaring gas prices and Moscow’s efforts to curb supplies to Europe have already prompted a raft of government bailouts and bailouts. But these measures are increasingly being overshadowed by the scale of the crisis.
With Russia’s main pipeline to Germany cut off, Uniper has to source alternative supplies and is making losses of up to 100 million euros a day, according to its CEO.
The federal government is also in talks to take over at least two other companies, which could happen in a coordinated blow.
Talks about Uniper are particularly tense as they also involve the Finnish government, which is the majority owner of Fortum, which in turn is Uniper’s largest shareholder.
Fortum has already provided credit facilities that were quickly exhausted, and the Finnish government made it clear earlier this year that it doesn’t want to get caught.
Finland’s government is also coming under a lot of pressure for its handling of the bailout of opposition parties.
https://www.independent.ie/business/world/germany-readies-deal-to-nationalise-gas-giant-uniper-as-it-locks-in-supplies-42004897.html Germany is preparing deals to nationalize gas giant Uniper as it freezes supplies