Federal Germany has finally decided to nationalize Uniper (UN01.DE):
- Back in July, Germany enacted a record financial bailout of Uniper amid rising gas and electricity prices. The July deal amounted to €14.95 billion;
- The company was unable to pull itself together despite the massive aid package in July, and the situation continued to deteriorate. Just a year ago, the share price was soaring in the face of the possible opening of Nord Stream 2;
- Germany intends to buy a 56% stake in Finland's Fortum for €500 million. Fortum tried to rescue the German giant's condition with a €4 billion loan. However, the business was completely destabilized by the suspension of Russian gas supplies;
- Faced with the complete suspension of Russian supplies via Nord Stream 1, CEO Klaus-Dieter Maubach indicated in an interview with US CNBC that this would further exacerbate the company's problems. Today we already know that the German Federal Government will acquire 98.5% of Uniper;
- Fortum will deconsolidate Uniper by the end of this quarter. Uniper's dire situation was also commented on by the president of the Finnish consortium, Markus Rauramo. The company has abandoned the idea of a merger with the German conglomerate:
"Under the current circumstances in the European energy markets and recognizing the seriousness of Uniper's situation, divesting Uniper is the right step, not only for Uniper, but also for Fortum (...) The role of gas in Europe has changed fundamentally since Russia's attack on Ukraine, as has the outlook for the gas portfolio. As a result, the business case for an integrated group is no longer viable."
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Create account Try a demo Download mobile app Download mobile app- The nationalization of the company can be seen as another attempt to save Germany's economy from the energy crisis.
Uniper (U01.DE) stock chart, W1 interval. The stock price collapsed on the day Russia invaded Ukraine. The company's business plunge was exacerbated by the suspension of gas supplies via Nord Stream. The stock is at historic lows. Source: xStation5
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