The Germany government has signed a deal to acquire additional stake and nationalise gas importer Uniper to ensure energy supplies in the country amid the mounting energy crises.
The government currently owns a 30% stake in Uniper. Germany will acquire additional stakes from Finnish energy firm Fortum, taking its total share in the gas importer to 99%.
The move to nationalise the gas importer also increases the rescue package to Uniper to €29bn ($28.7bn) amid an escalating energy crisis due to gas supply cuts by Russia, reported Reuters.
The three parties have agreed on an amendment to the package of measures agreed in July 2022 to ensure Uniper’s long-term stabilisation.
As per the latest agreement, Uniper will issue 4.7 billion new ordinary shares to the German State, at a nominal value of €1.70 per share, taking the total value of the shares to €8bn ($7.9bn).
German state-owned bank KfW will provide additional liquidity support needed for Uniper until the completion of the $7.9bn capital increase.
Germany also agreed to take on a credit line of €8bn that was provided by Fortum, upon the closing of the deal.
Fortum said the new measures come in the wake of the deteriorating situation of Uniper since the announcement of the stabilisation package, when Germany approved a rescue package of €15bn.
In a press statement, Fortum said: “Since July, the European energy crisis has escalated further and the severity of the situation has made it apparent that the previously agreed stabilisation measures are insufficient and difficult to implement.”
To date, Uniper reported gas-related losses of €8.5bn.
Uniper CEO Klaus-Dieter Maubach: “Today’s agreement provides clarity on the ownership structure, allows us to continue our business, and to fulfil our role as a system-critical energy supplier.
“This secures the energy supply for companies, municipal utilities, and consumers. The amendment of the stabilisation package announced in July was necessary against the backdrop of the further intensification of the energy crisis.”
Upon completion of the latest deal, Fortum intends to focus on clean power generation in the Nordics region.