German energy giant Uniper SE is in talks with the government for a bailout package of up to 9 billion euros ($9.4 billion), Bloomberg reported, citing a source with knowledge of the matter.
The government is considering imposing a series of measures that will include loans to the company, the taking of a share and the passing on of part of the cost to consumers, the agency reports.
The company, which is among the largest importers of Russian natural gas, announced last week that he started talks with the government in order to ensure liquidity. Its shares fell 28% today, taking the company’s market capitalization to €4.14 billion.
According Reuters reportthe German government plans to use the mechanisms it had set up to deal with the coronavirus crisis to be able to take stakes in utilities at risk of collapse amid the energy crisis.
Under the plan, the government will be able to take voting or non-voting stakes in companies operating in critical sectors of the economy.
Germany’s Economy Minister Robert Habeck recently warned of a repeat of the crisis caused by the collapse of Lehman at the height of the 2008 financial crisis, as suppliers face exorbitant costs to meet their obligations to their customers.
According to Bloomberg the bill is expected to be approved by the cabinet on Tuesday. The procedures for its approval in both houses of the German parliament will follow on Friday.
Source: Capital
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