• 3 minutes Marine based energy generation
  • 5 minutes "Saudi Armada heading to U.S.", "Dumping" is a WTO VIOLATION.
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Which producers will shut in first?
  • 2 hours A small trial finds that hydroxychloroquine is not effective for treating coronavirus
  • 4 hours Saudis to cut 4mm bbls. What a joke.
  • 3 hours Saudi Arabia Is Buying Up European Oil Majors
  • 2 hours The GREAT OPEC+ Agreement
  • 1 hour Trump will be holding back funds that were going to W.H.O. Good move
  • 3 hours Chinese Communist Party
  • 1 hour US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 4 hours Occidental hypocrisy
  • 2 hours Russia's Rosneft Oil is screwed if they have to shut down production as a result of glut.
  • 8 hours Sharp real pure true hard working roughneck needing work..
  • 8 hours Death Match: Climate Change vs. Coronavirus
  • 9 hours Get First Access To The Oilprice App!
Trump: Free Markets Will Determine U.S. Oil Production

Trump: Free Markets Will Determine U.S. Oil Production

U.S. President Trump believes local…

European Energy Giants Wait On Russia Approval For $2.6 Billion Deal

European Utility Giant

Russia could okay within half a year a deal that would pave the way for Finnish utility Fortum to boost its stake in Germany’s utility Uniper to more than 50 percent, Russian Economy Minister Maxim Oreshkin said on Monday.

Earlier this month, Finnish state firm Fortum said that it agreed to buy the combined 20.5-percent stake of activist funds Elliott and Knight Vinke in Uniper, which would give the Finnish company an ownership of more than 70.5 percent in the German utility Uniper, up from 49.99 percent now.

Russia, however, is a key jurisdiction that has to approve the deal, not only because both Fortum and Uniper have operations there, but also because a unit of the German utility holds a water license in Russia, which Moscow considers strategic and as such it does not allow, under current legislation, foreign state-held companies to hold more than 49.99 percent in strategic assets.

Announcing the deal in early October, Fortum said that the closing of the transaction to buy the 20.5-percent stake in Uniper, worth US$2.6 billion (2.3 billion euro), is subject to regulatory approvals in Russia and the United States.

“Fortum is in discussions with the Russian state authorities and has made a preparatory filing to the Russian Federal Antimonopoly Service,” the Finnish firm said, referring to the path to approval in Russia.

In June this year, Fortum’s chief executive officer Pekka Lundmark discussed the issue of the stake restriction with Russian President Vladimir Putin.

During the meeting, Lundmark “did raise the point that we have a restriction limiting any possible future investments into Uniper based on a negligible water treatment activity that Uniper conducts at one of their power plants in Russia,” a spokeswoman for Fortum wrote in an emailed statement to Reuters. 

Last week, the head of the Russian anti-monopoly service, Igor Artemyev, said that the regulator considers changing the rules and allowing Uniper to outsource its water business so that Fortum could own a majority stake in the German utility. 

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage




Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News