• GE GVT took over energy company Uniper securing energy supply in the country.
• Follows GE GVT September 2022 agreed comprehensive stabilization package.

Overview

• Uniper is largest German importer of Russian gas, currently in acute financial distress.
• GE GVT has taken over 99% of company to ensure the energy supply in Germany.
• It will be stabilized and energy supply for firms, municipal utilities, consumers secured.
• Uniper plays crucial role in supply of gas, electricity in GE, as largest importer of RUS gas, is in dire straits due to lack of gas deliveries from Russia, sharp rise in gas prices.
• Federal government had already agreed on supporting measures on 22 July 2022.
• Further increase in costs aggravated company's situation to such extent that federal government agreed on alternative and much more extensive stabilization package.
• The takeover stabilizes the company and secures the energy supply for all in Germany.
• Chancellor Scholz emphasized it is necessary to make decision now to give it a future.
• So reached agreement on this with previous shareholder as war has far-reaching consequences, GVT has already supported Uniper with many billions, including loans.
• Step needed as situation changed since Chancellor's announcement of 22 July 2022, again significantly, even tightened since no more gas is flowing via Nord Stream 1.
• Situation that country managed exceptionally well so far, storage levels have cracked 90%, after brief spike, gas price has now fallen from high of 350 euros per megawatt hour in the summer to below 200 euros.
• Uniper has 50% share in portfolio from RUS gas, represents 40% of GE's gas supply.
• After market analysis and examination of alternatives, the was decision made to ensure the security of supply for Germany, confirmed the Minister of Economics.