Germany will nationalise Uniper in a historic move to rescue the country’s largest gas importer and avert a collapse of the energy sector in Europe’s biggest economy this winter.
The government in Berlin will inject €8 billion into the Düsseldorf-based utility via a capital increase at €1.70 per share, Finnish parent company Fortum said Wednesday in a statement. Uniper has accumulated €8.5 billion in gas-related losses after Russia cut off supplies to Europe, sending prices for alternative sources soaring.
“Under the current circumstances in the European energy markets and recognising the severity of Uniper’s situation, the divestment of Uniper is the right step to take, said Markus Rauramo, chief executive and president of Fortum.
As part of the deal, Germany will take full ownership of Uniper, buying Fortum’s controlling stake of around 78 per cent for about 500 million, said Fortum, which is majority owned by the Finnish government. On completion of the deal, the German state will own approximately 98.5 per cent of Uniper, it added.
Parties’ general election manifestos struggle to make the figures add up
On his return to Web Summit, the often outspoken chief executive Paddy Cosgrave is now an epitome of caution
Surviving a shake-up: is restructuring ever good for staff?
The Irish Times Business Person of the Month: Dalton Philips, Greencore
Chancellor Olaf Scholz’s ruling coalition is determined to ensure Uniper’s survival in coming months, when the energy crunch could worsen as temperatures fall heading into winter.
Uniper has already been given a series of bailouts and rescue loans but those were quickly overtaken by the scale of the crisis and more robust state support is required. — Bloomberg.
