© Archyde.com. Germany completes nationalization of energy giant Uniper to prevent energy sector collapse
News from the Financial Associated Press on December 23 (edited by Niu Zhanlin)On Thursday local time, the German Federal Ministry of Economic Affairs and the Ministry of Finance issued a joint statement announcing that the acquisition of energy giant Uniper has been completed and that it now owns 99% of the company’s shares.
Uniper is Germany’s largest importer of Russian natural gas and one of Europe’s largest utilities. Nearly half of Germany’s approximately 900 local municipalities rely on Uniper for gas or electricity.
The German government statement shows that the federal government invested 8 billion euros to own a 93% stake in Uniper, and bought a 6% stake in Uniper from the company’s major shareholder, the Finnish Fortum Group, for 500 million euros. At the same time, the federal government also plans to raise 25 billion euros in the future.
On Tuesday, the European Commission approved the German federal government’s aid and financing package for Uniper, but in order to avoid unfair competition, the German government must reduce its stake to 25% by 2028 at the latest, only if the European Commission approves it. The next can be extended.
The European Commission believes that the German government’s acquisition of Uniper is in line with EU aid regulations and is to restore Uniper’s financial position and liquidity in order to deal with the exceptional circumstances caused by the interruption of natural gas supply.
Until the exit strategy is completed, Uniper’s board members’ remuneration will be strictly limited, including a ban on bonuses. Uniper is generally prohibited from buying shares in other companies until the end of 2026.
The joint statement of the German Ministry of Economy and Finance also stated that the group will establish a new supervisory board, and four new members will replace representatives of the Fortum Group as members of the supervisory board.
With soaring energy prices threatening the core of the continent’s manufacturing system, countless companies are facing crisis. Companies across Europe are cutting production and starting to shift investment overseas, including in the United States.
According to data from the German Chemical Industry Association, nearly a quarter of chemical companies in Germany have already transferred or plan to transfer part of their production overseas, and 40% of the companies have already or plan to reduce production. In Germany, Europe’s largest economy, the chemical industry employs regarding 500,000 people.
