Picture Alliance | Picture Alliance | Getty Images The German government agreed on Wednesday to nationalize utility Uniper as it tries to keep the industry afloat in the wake of a global energy crisis. Having already agreed in July to bail out the major gas importer in a 15 billion euro ($14.95 billion) bailout deal, the state will now buy a 56 percent stake in Finland’s Fortum for 0.5 billion euros. The German state is to own around 98.5% of Uniper. “Since the stabilization package for Uniper was agreed in July, Uniper’s situation has further deteriorated rapidly and significantly; therefore, new measures have been agreed to resolve the situation,” Fortum said in a statement on Wednesday morning. Uniper is Germany’s biggest natural gas importer and has been squeezed by sharply reduced gas flows from Russia, which have sent prices skyrocketing. Russian state energy giant Gazprom has indefinitely halted natural gas flows to Europe through the Nord Stream 1 pipeline, a move that Uniper CEO Klaus-Dieter Maubach told CNBC will worsen the company’s struggles. Fortum will deconsolidate Uniper from the third quarter of 2022, the company announced on Wednesday, while Fortum’s 4 billion euro loan to Uniper will be repaid and the Finnish company will be freed from the parent company’s 4 billion euro guarantee. “Under the current conditions in the European energy markets and recognizing the seriousness of Uniper’s situation, the divestment of Uniper is the right step, not only for Uniper but also for Fortum,” said Fortum CEO Markus Rauramo. “The role of natural gas in Europe has changed fundamentally since Russia attacked Ukraine, as has the prospect of a heavy gas portfolio. As a result, the business case for an integrated group is no longer viable.” This is breaking news. Check back for more.
