Germany's Uniper sale risks leaving money on table

Uniper SE

08/10/2026 11:41

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. Refiles to fix typo in paragraph 6.
By Liam  Proud
LONDON, Oct 8 (Reuters Breakingviews) - When Germany rescued Uniper UN0k.DE in 2022, making a profit wasn't the priority. The goal was to stabilise a company that was, and still is, central to the energy needs of Europe's largest economy. Now, as Berlin re-privatises Uniper, it could in theory more than break even. But insisting on keeping the disparate portfolio of businesses together risks a discounted valuation.
Uniper is one of those companies that no one would invent if it didn't already exist. It spans Swedish nuclear power, German gas-fired plants, an energy-trading unit and other businesses. When Russia invaded Ukraine it suffered two blows. Uniper faced collateral demands on derivative trades, and when Russian gas was no longer flowing it had to pay exorbitant prices for replacement supplies. Berlin stepped in with €13.5 billion of capital injections, and bought shares from the group's then-controlling Finnish owner Fortum FORTUM.HE for around €500 million. That left the government with a 99% stake.
Now it's time to get out. Officially, the government is pursuing two options: either a majority sale or an initial public offering, retaining a 25% holding in either scenario. Floating looks tough given a subdued European market, which means the roughly 75% stake sale seems more likely. Reuters has reported that the runners and riders in the bidding include Apollo Global Management APO.N, Norway's Equinor EQNR.OL, Daniel Kretinsky's EPH, and two consortia. One pairs KKR KKR.N and Germany's RWE RWEG.DE and another involves Brookfield ​and the Canada Pension ‌Plan Investment Board.
On paper, a breakup is the best way to maximise value. Nordic players would probably go for the assets in their home region, while RWE or buyout barons could take the local German generation business, for example. It's hard to know what these parties would bid, but one way to think about the possible breakup value is to use brokers' sum-of-the-parts valuations.
ODDO BHF analysts value Uniper's equity at €17.7 billion, after adding up the value of its component parts, including net cash and deducting other liabilities. On that basis, the government could bank a tidy profit based on the paper value of its holding - especially since it has already received around €3.5 billion from Uniper, through state aid ⁠paybacks and dividends, according to Reuters.
But the chances of taxpayers seeing that much value seems remote. That's because Berlin wants to keep a one-quarter stake to retain influence over major decisions, and appears to oppose a breakup, meaning Uniper will merit a hefty conglomerate discount. A finance ministry spokesperson said Berlin wants to ensure the viability of the company as a whole, given its importance to country's energy supply.
That doesn't seem like a great argument. First, Swedish nuclear power has little to do with German energy security. As for the local assets, governments have many ways to influence producers without owning large stakes, including through regulation.
Saving Uniper wasn't about making a profit, but that doesn't mean Berlin has to leave money on the table.
     
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CONTEXT NEWS
Apollo Global Management has submitted a non-binding offer for Uniper, Reuters reported on October 7, citing two people with direct knowledge of the matter.
Potential suitors had until September 21 to submit indicative bids for the German state-owned energy firm, which was taken over by the German government in 2022 under a €13.5 billion ($15.1 billion) bailout. In total, Berlin has received around €3.5 billion from Uniper since the bailout, including state aid paybacks and dividends.
Norway's Equinor, and a consortium consisting of KKR with German utility RWE, have also submitted bids, Reuters reported citing one of the two people. Suitors are expected to be informed about whether they can proceed to the next round in the coming weeks, according to the report, which cited a third person involved in the talks. 
($1 = 0.8938 euros)

(Editing by Aimee Donnellan; Production by Streisand Neto)
((For previous columns by the author, Reuters customers can click on PROUD/liam.proud@thomsonreuters.com))