Germany Begins Historic Takeover Swoop: Energy Update

  • In Business
  • 2022-09-16 08:27:39Z
  • By Bloomberg

(Bloomberg) -- Germany is taking control of Russian oil major Rosneft PJSC's German oil refineries and is nearing a decision to take over Uniper SE and two other large gas importers as it tries to avoid a collapse of its energy industry.

Most Read from Bloomberg

  • Adobe Near Deal for Online Design Startup Figma, Sources Say

  • Ray Dalio Does the Math: Rates at 4.5% Would Sink Stocks by 20%

  • Putin Acknowledges Xi's 'Concerns' on Ukraine, Showing Tension

  • Adobe Tumbles After Deal to Buy Figma for About $20 Billion

  • Putin's Options Narrow After Ukraine Scores Battlefield Rout

Regulator BNetzA will take trusteeship of stakes in oil refineries in Schwedt, Karlsruhe and Vohburg, equivalent to around 12% of Germany's oil processing capacity, the economy ministry said Friday.

State ownership of Uniper, VNG AG and Securing Energy for Europe GmbH, formerly Gazprom Germania GmbH, is the now main solution under discussion to prop up the gas industry too.

Surging gas prices and Moscow's move to squeeze supplies to Europe have already prompted a series of government bailouts and rescue loans. But those measures are increasingly dwarfed by the scale of the crisis and there's a risk that systemic energy providers collapse without more robust government support.

Key Developments:

  • Germany Tightens Control Over Industry With Russian Oil Grab

  • Germany Working on Historic Takeover of Three Gas Companies

  • France Aims to Cut Energy Consumption by 10% This Winter

  • UK to Meet Energy Firms in Push to Cap Low-Carbon Power Costs

(Timestamps in London.)

Uniper Shares Plunge (9:20 a.m.)

Shares in Uniper dropped for a fourth day, down as much as 16% to a record low after Bloomberg reported the governemnt is close to taking control of the company.

Fortum Wants Its Money Back for Uniper (9:04 a.m.)

Fortum OYJ has already granted loans to Uniper but made clear earlier this year it didn't want to keep extending credit. Any deal in which Germany takes control, would mean giving partly state-owned Fortum its money back.

"It is very clear that Finland will not agree that Germany could nationalize Uniper without compensation," Finland's ownership steering minister Tytti Tuppurainen. "We also maintain that the 8 billion euro financing provided by Fortum to Uniper will still be available to us."

Germany Worried About Systemic Failure: RBC (9:00 a.m.)

Willingness in Berlin to provide further bailout support to Uniper shows "clearly the government is worried about systemic failure in imports of gas into Germany," John Musk, analyst at RBC Europe Ltd said.

A takeover is complicated by Fortum's 78% stake in Uniper but RBC expects the German government to press on given the strategic importance of securing gas supplies ahead of winter.

Gas Prices Slip in Early Trading (7:18 a.m.)

Benchmark European gas futures fell as much as 3.9% to 206 euros per megawatt-hour. Trading has been volatile in recent days as traders take stock of various government plans to ease the crisis. For now, prices are little changed on the week.

UK to Meet Energy Firms Next Week (6:30 p.m. Thursday)

The UK government is set to meet with some of the country's biggest power producers to push through a measure that would cap wholesale electricity prices starting this winter for low carbon sources of electricity. UK Business Secretary Jacob Rees-Mogg is pushing to quickly agree long-term contracts with energy sources like wind farms, nuclear plants and biomass-burning stations.

France Steps Up Target to Cut Power Use (5:30 p.m. Thursday)

The French government hiked its target to reduce energy consumption this winter and avoid energy outages in a bid to shake up public awareness.

Prime Minister Elisabeth Borne urged households, businesses and local and national authorities to cut their power use by 10% compared to last year, according to a presentation sent to reporters following a press conference. Emmanuel Macron's government had previously put forward a target to reduce consumption by that amount within two years.

Most Read from Bloomberg Businessweek

  • It's White-Collar Jobs That Are at Risk in the Next Recession

  • Chinese Manufacturers Get Around US Tariffs With Some Help From Mexico

  • The Ethereum Merge Ups the Stakes-and Reshapes the Crypto Universe

  • The Biggest Copper Mine in the US Stalled in Dispute Over Sacred Ground

©2022 Bloomberg L.P.


More Related News

India Banking Regulator Asks Paytm Unit to Reapply for License
India Banking Regulator Asks Paytm Unit to Reapply for License

(Bloomberg) -- India's banking regulator asked a unit of Paytm to resubmit its application for approval required to provide payment aggregator services, a...

IPO Hole Is Partly Plugged by $24 Billion Burst in Share Sales
IPO Hole Is Partly Plugged by $24 Billion Burst in Share Sales

(Bloomberg) -- All is not lost for equity capital market bankers. Most Read from BloombergTiantian Kullander, Co-Founder of Crypto Firm Amber, Dies at 30A...

Macau's Casino Operators Get New Licenses; Genting Loses Out

(Bloomberg) -- Macau's six casino operators won new licenses to continue running their businesses in the city, as a firm linked to Genting Group failed in...

US Bans Huawei, ZTE Telecom Equipment on Data-Security Risk
US Bans Huawei, ZTE Telecom Equipment on Data-Security Risk

(Bloomberg) -- Huawei Technologies Co. and ZTE Corp. were banned from selling electronics in the US by regulators who say they pose a security risk...

Warnock Has More Cash, But GOP Super-PAC Has Plenty for Walker
Warnock Has More Cash, But GOP Super-PAC Has Plenty for Walker

(Bloomberg) -- Democratic Senator Raphael Warnock has three times as much cash as former NFL great Herschel Walker heading into the final stretch of their...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


  • pug puppies for sale near me
    (2022-09-16 12:00:56Z)

    Pug pups for sale are utterly gorgeous, affectionate, and intelligent. Excellent pedigrees, gorgeous coats, finely formed ears, a tight, curled tail, outstanding faces, and a superb conformation like their parents are all present in these puppies. The parents are both in wonderful health and are kind and devoted family members. They will arrive fully registered with the AKC, with pedigree papers, and with a one-year health guarantee.

    Pug Puppies for Sale Near Me


Top News: Business