Germany to nationalise gas giant Uniper in historic bailout

Bloomberg

The German government is planning to inject about 8 billion euros ($8 billion) into Uniper SE as part of a historic agreement to nationalise the gas giant and stave off a collapse of the country’s energy sector.
Uniper confirmed it is in final discussions with the government over a package that would include an 8 billion-euro capital increase, subscribed entirely by the government. Berlin will also buy the shares of its main shareholder, Finland’s Fortum Oyj.
Uniper, the biggest German buyer of Russian gas, is at the epicenter of the crisis sparked by Moscow’s moves to cut energy flows in retaliation for war-related sanctions.
The government was under pressure to act as the company’s failure could ripple through Europe’s largest economy — and also threaten fuel supplies.
Uniper shares jumped 3%. Fortum shares rose 9.5% before trading was halted by the exchange. The new agreement would replace a bailout plan from July that would have seen the government take a 30% stake in Uniper.
Surging gas prices and Russia’s squeeze on supplies to Europe have already prompted a series of bailouts and rescue loans. But those measures are increasingly dwarfed by the scale of the crisis, and there was a risk that systemic energy providers collapse without more robust government support.
With Russia’s main pipeline to Germany cut off, Uniper is having to source alternative supplies from the spot market
to serve its clients, which include manufacturers and local utilities.