Fortum seeks 3.8 billion euro stake in German energy firm

Power company Fortum is in talks with German utility E.ON to buy its 47 percent stake in energy business Uniper for 3.8 billion euros.

Fortum is in talks to buy a stake in German power company Uniper. Image: Jyrki Lyytikkä / Yle

Finnish power firm Fortum is in talks to buy a major stake in energy company Uniper.

Germany-based Uniper owns hydropower and gas-fired plants in central Europe, the UK and Russia, as well as nuclear power plants in Sweden. It also trades commodities globally. 

Pekka Lundmark, CEO of Fortum, says that Uniper’s businesses are “well aligned with Fortum’s core competencies, close to its home markets and highly cash generative.”

Fortum, which is majority-owned by the Finnish state, focuses on low-emissions power generation. Its main assets include hydro and nuclear power plants in Finland, Sweden and Russia. 

Last year, Uniper reported a pre-tax profit of 2.1 billion euros on a turnover of 67 billion euros. In comparison, Fortum’s full-year 2016 sales totaled 3.6 billion euros and its pre-tax earnings came to 1 billion euros.

Fortum says it will make an offer for the rest of Uniper’s shares, if the deal with E.ON goes through.