The German government has moved to nationalize utility company Uniper (UN01) as it strives to
keep the European economy operating while Russia halts natural gas flows to the continent.
Having already approved a $14.95 billion U.S. bailout of Uniper, Germany’s government is now
buying out the 56% stake of Finland’s Fortum, which will give the German state 98.5%
ownership of the utility company.
Uniper is Germany’s largest importer of natural gas and has been hurt by reduced gas flows
from Russia, which has sent prices soaring throughout Europe in recent months.
Russian state-owned energy giant Gazprom has indefinitely suspended natural gas flows to
Europe via the Nord Stream 1 pipeline that runs to Germany.
Germany, France, and other nations across Europe are scrambling to fill their natural gas
reserves before the colder winter weather arrives.
Uniper’s stock is down 93% this year and trading at EUR 2.77 (Cdn $3.68) per share.
