Germany absorbs Uniper gas company
2022.12.16 08:40
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Germany absorbs Uniper gas company
Budrigannews.com – The European Commission has supported the procurement of Uniper SE (OTC:) by the German government, it said on Friday, making it possible to nationalize the gas trading company that nearly went bankrupt when Russia stopped providing gas.
After concluding that it would not cause any concerns regarding competition, the acquisition was approved in accordance with the EU merger regulation. Under state aid regulations, Uniper’s bailout must still be approved by the Commission.
According to the Commission, “the transaction was prompted by the ongoing European energy crisis, in particular the cessation of Russian gas deliveries and the sharp rise in gas prices,” requiring “significant capital injections to prevent its insolvency” for Uniper, Germany’s largest importer of Russian gas.
(MCX:) Gazprom Previously, they were Uniper’s largest gas supplier, but deliveries were cut in half during the summer and completely stopped at the end of August, necessitating that Uniper purchase gas from other sources at significantly higher prices to fulfill existing contracts.
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The acquisition’s approval by the EU comes just a few days before a scheduled extraordinary shareholder meeting on December 19, at which investors in Uniper are expected to approve the bailout, which has so far cost more than 54 billion euros.
A spokesperson for Germany’s Economy Ministry, which played a crucial role in negotiating the nationalization, stated, “This is an important step in the proceedings.”
