Germany nationalises gas giant Uniper to avert winter energy collapse

“This secures the energy supply for companies, utilities, and consumers.” Klaus-dieter Maubach

FRANKFURT: Germany will nationalise Uniper SE 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 8bil (Us$8bil or Rm36.18bil) into the Dusseldorfbased utility via a capital increase at 1.70 (RM7.69) per share, the German economy ministry, Uniper and Finnish parent company Fortum Oyj said.

Uniper has accumulated 8.5bil (Rm38.34bil) in gas-related losses after Russia cut off supplies to Europe, sending prices for alternative sources soaring.

As part of the deal, expected to be completed by the end of the year, Germany will take control of Uniper, buying the 78% owned by Fortum – which is majority owned by the Finnish government – for about 480mil (Rm2.17bil).

The German state will own approximately 99% of Uniper.

“Today’s agreement provides clarity on the ownership structure, allows us to continue our business and to fulfill our role as a system-critical energy supplier,” Uniper chief executive officer Klaus-dieter Maubach said in a statement.

“This secures the energy supply for companies, municipal utilities, and consumers.”

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.

Surging gas prices and Moscow’s squeeze on supplies to Europe has forced the government to overhaul its energy policy after decades of cooperation with Russia.