German government agrees nationalization deal for energy firm Uniber

Uniber has received billions in financial aid from the German government as a result of rising gas and electricity prices following Russia’s war in Ukraine.

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The German government agreed to nationalize the utility on Wednesday Univer Trying to keep the industry afloat in the wake of the global energy crisis.

Already accepted in July Bailout of major gas importer with 15 billion euros ($14.95 billion) rescue deal, the government will now buy a 56% stake in Finland Fortum for 0.5 billion euros. The German government holds a 98.5% stake in Uniber.

“Since the stabilization package for Uniper was agreed in July, the situation at Uniper has deteriorated rapidly and significantly; therefore, new measures have been agreed to address the situation,” Fortum announced in a statement on Wednesday morning.

Univer is Germany’s biggest gas importer and has been squeezed by drastically reduced gas flows from Russia, which has pushed up prices.

Russian state-owned energy company Gazprom earlier this month Gas to Europe suspended indefinitely A move, via the Nord Stream 1 pipeline Uniber CEO Klaus-Dieter Maubach told CNBC Adding to the struggles of the company.

Fortum will spin off Uniper in the third quarter of 2022, the company said on Wednesday, after Fortum’s 4 billion euro debt to Uniper is repaid and the Finnish company is released from a 4 billion euro parent company guarantee.

“Given the current situation in the European energy markets and the seriousness of Uniper’s situation, divesting Uniper is the right move not only for Uniper but also for Fortum,” said Fortum CEO Markus Rauramo.

“The role of gas in Europe has fundamentally changed since Russia attacked Ukraine, and so has the outlook for a gas-heavy portfolio. As a result, the business case for an integrated group is no longer viable.”

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