Germany Nationalizes Uniper, Its Largest Gas Company, with 40 Trillion Won Investment (Comprehensive)

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[Asia Economy Reporters Hyunwoo Lee and Hyunjin Jung] The German government is set to nationalize 'Uniper,' the country's largest gas retailer, by injecting over 40 trillion won in public funds. This move is interpreted as a proactive response to Russia's gas supply pressure and a measure to take the lead in emergency actions such as gas rationing if necessary in the future.

According to Deutsche Welle (DW) and others on the 21st (local time), the German Ministry of Economy announced that it has agreed to acquire 98.5% of the shares of Finnish company Fortum and its subsidiary Uniper. The government will hold 98.5% of the shares by adding new shares to the existing 78% held by Fortum. The entire transaction is expected to be completed by the end of the year.

Earlier, Uniper disclosed that "the German federal government is in final negotiations to acquire shares from the parent company Fortum," and that "the government proposed a new bailout package including a capital increase of 8 billion euros (about 11 trillion won)." However, the actual amount the German government is expected to spend on Uniper's bailout is nearly double the initially announced 15 billion euros in July, reaching approximately 29 billion euros.

As Uniper's operational difficulties worsened due to Russia's gas supply pressure, the German government began providing bailout support with public funds starting in July, raising the possibility of nationalization. Initially, the German government planned to acquire about 30% of Uniper's shares, but due to increasing energy security concerns, it decided to significantly increase its stake. Robert Habeck, Germany's Minister of Economy, told reporters, "As you can see now, we are doing everything possible to ensure companies remain stable in the market."

Following the announcement of the agreement, Uniper CEO Klaus-Dieter Maubach said, "Today's agreement provides clarity on the shareholding structure, allows us to continue our business, and enables us to fulfill our role as a key energy supplier in the system," adding, "It will ensure stable energy supply to companies, local governments, and consumers."

With growing concerns over a gas crisis during the winter, the German government is expected to accelerate the nationalization of major gas companies. It has already announced the nationalization of the German subsidiary of Gazprom, the second-largest gas company in Germany, and is currently negotiating the nationalization of Leipzig-based VNG, the third-largest gas company.

This content was produced with the assistance of AI translation services.