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Germany Eyes Uniper Exit: Privatization Ahead?
28 Apr
Summary
- Berlin may begin Uniper reprivatisation soon.
- A merger with SEFE is now less likely for Uniper.
- The process could end uncertainty after nationalization.
Berlin is preparing to launch the reprivatisation of Uniper, an energy firm bailed out by the German government. This process, which could lead to a sale or stock market listing, is anticipated to commence via an official tender note before the upcoming summer.
The decision signals that a merger between Uniper and another nationalized energy company, SEFE, is unlikely to proceed. Such a merger was previously discussed but is now viewed as a complex and lengthy undertaking.
This potential separation of Uniper and SEFE aims to conclude months of uncertainty. Both firms were nationalized in 2022 during Europe's significant energy crisis, with the German government investing nearly 20 billion euros in total.
SEFE's recent proposal to raise up to 2 billion euros over the next nine to twelve months further indicates its focus on independent divestment. Uniper, which recently announced its first dividend in four years, and SEFE must both comply with an end-2028 deadline set by Brussels for reprivatisation.
While Germany's Economy Ministry stated that various options are under examination, no final decisions have been made. The ministry emphasized that the process will prioritize Germany and Europe's security of energy supply.
