Fortum will acquire a majority stake in Uniper (Germany)

Fortum has agreed to acquire a majority stake in Uniper, by acquiring approximately 20.5% of Uniper’s share capital from funds managed by Elliott Management Corporation and Knight Vinke, at a price of €29.93/share, corresponding to a total of around €2.3bn. Fortum, which already held 50% in Uniper, will increase its ownership to more than 70.5%, representing a total investment of €6.2bn in the German company. The transaction is expected to close by the end of the first quarter of 2020, pending customary regulatory clearances in Russia and the United States

Uniper is active in power generation and energy trade in Europe. The group operates around 34 GW of power capacity in Europe and Russia and large gas storage sites in Germany, Austria and the United Kingdom. Uniper is also developing energy storage solutions to support the growth of renewables. Fortum is active in power generation (more than 13.7 GW installed capacity in 2018) and is present in the Nordic and Baltic countries, Russia, Poland and India. 

Fortum expects the transaction to create a leader in the European energy transition and to realise attractive returns on its investment in Uniper. The portfolios of the two companies are synergistic in Sweden and Russia, while Fortum will now have access to Germany and other continental European markets.