You can read more about the law here. FORTUM CORPORATION STOCK EXCHANGE RELEASE 26 MARCH 2020 AT 16:30 EET, Release category: Other information disclosed according to the rules of the exchange. Uniper is a successful, international energy provider and trader, and a great match with Fortum. Fortum Corporation has today closed the first tranche of the agreement to purchase the Uniper SE (“Uniper”) shares held by Elliott Management Corporation and its affiliates and Knight Vinke Energy Advisors Limited and its affiliates. Fortum acknowledges the integrity of existing employee rights and is committed to protecting the interests of Uniper employees.
Together, Fortum and Uniper will be a European leader that has the scale, competences, and resources to prosper, grow, and lead the energy transition. According to the coal phase-out law passed in July, the use of coal will be phased out gradually by the end of 2038. At the moment, Europe’s emissions trading not only covers emissions from electricity and district heat production but also emissions from the European industrial sector and air traffic. According to the law, the use of hard coal and lignite in energy production will be phased out by the end of 2038 at the latest. Joint news conference for investors, analysts, and the media: An international teleconference for institutional investors and analysts as well as the media will be arranged today Tuesday 8 October 2019 at 11:00 EEST / 10:00 CEST. What impact will the Uniper investment have on Fortum’s total emissions? Uniper has not sued the Dutch Government. The new EU Commission is pursuing carbon neutrality for the European Union by 2050. I am convinced that together we can use the combined skills and resources of Uniper and Fortum to create interesting opportunities for our employees,” Pekka Lundmark concludes.
The German parliament has on July 3, 2020 passed a coal phaseout law. The goal of the EU is to be climate neutral by 2050. 3) Fortum’s interest-bearing liabilities and liquid funds as defined in Fortum's financial statements. The total acquisition cost including direct costs relating to the acquisition will be reported in the 'Participations in associated companies and joint ventures'. In the interest of strengthening the basis for a trustful engagement with Uniper and its employees, Fortum rules out any domination and/or profit and loss transfer agreement (DPLTA) with Uniper or squeeze-out for at least two years. Upon closing of the transactions, Fortum’s share in Uniper will increase to more than 70.5% and the total investment in Uniper to approximately EUR 6.2 billion, representing an average acquisition price of EUR 23.97 per share. Will Fortum’s Uniper investment tarnish Finland’s climate reputation? Fortum expects to realise attractive returns on its investment in Uniper and wants to continue paying a stable and over time increasing dividend to its shareholders. Production that secures the functionality of society at all times is needed alongside intermittent renewable energy. Uniper is listed on the Frankfurt stock exchange (Börse Frankfurt). Uniper is a pacesetter in this development work. The companies can then trade the emission allowances with one another. The Uniper Supervisory Board also comprises six employee representatives: Harald Seegatz, Ingrid Åsander, Oliver Biniek, Barbara Jagodzinski, André Muilwijk, and Immo Schlepper. Fortum and Uniper’s financial positions are solid as confirmed by Standard & Poor’s recent rating affirmation of BBB, with negative outlook, for both companies. Hydrogen meets the requirements for these needs. Urgent actions are needed, but, for a functioning society, shutting down all fossil production at once is simply not possible – no matter how much we would like that. Finland +358 (0)9 2319 5437, Uniper is a global energy company that generates, trades and markets energy on a large scale.
It makes sense to first shut down the most polluting plants. This capacity exceeds that of all the hydropower plants in Finland combined. Uniper doesn’t object to the phase out of coal power – the company’s goal is that its European production is carbon neutral by 2035. Coal accounts for 12% of Fortum and Uniper’s combined production – and that will decrease in the upcoming years.
Of Fortum and Uniper’s combined production, 37% is carbon-free hydro and nuclear power and 49% is gas power. Fortum will fully consolidate Uniper as a subsidiary in its financial statements from closing of the transaction.
The strong financial position makes it possible to implement the needed measures to mitigate climate change. Coal power cannot be shut down all at once without widespread power outages. The strategy Uniper published in March 2020 is a good starting point; at its core is phasing out coal in Europe, converting fossil production, growing the gas business, and developing hydrogen and other new solutions. Fortum has committed to shared efforts to mitigate climate change. Thereby Uniper remains a separate company, listed in Germany. This is very much in alignment with Fortum’s strategy that is strongly weighted to carbon-free energy production. Overall, Uniper’s coal power capacity will be cut in half by the end of 2025, and the company is aiming for its electricity and heat production in Europe to be carbon-neutral in 2035. Fortum and Uniper are together Europe’s third largest produce… Closing of the transaction is subject to customary regulatory clearances in Russia and the United States, and is expected by the end of the first quarter of 2020. Pauliina Vuosio, VP, Executive Communications, tel. With Uniper, Fortum’s share of carbon-free production grows by approximately 60%, and together Fortum and Uniper will become Europe’s third-largest producer of carbon-free electricity.
+358 44 518 1518 We invested 401 million euros in carbon dioxide-free production in 2019 – one hundred million more than in 2018. By aligning our strategies, we will be able to take a leading role in the European energy transition and create value for all stakeholders,” says Pekka Lundmark, President and CEO of Fortum. Even a short power outage has an impact on water intake and wastewater removal.
And costs must be kept affordable for everyone, for industry and services, for cities, transportation and households. The International Energy Charter Treaty (ECT) protects companies from unilateral regulatory changes. In the interest of strengthening the basis for a trustful engagement with Uniper and its employees, Fortum has ruled out any domination and/or profit and loss transfer agreement (DPLTA) or squeeze-out of minority until the end of 2021. The transactions are financed with existing cash and committed credit facilities. We employ some 8,000 professionals in the Nordic and Baltic countries, Russia, Poland and India. The transaction now entered into underlines the long-term nature of Fortum’s ownership in Uniper. Uniper operates power plants in Europe and Russia, with a total generating capacity of around 34 gigawatts, and it runs an extensive energy trading business. We want to engage our customers and society to join the change for a cleaner world. In Central Europe, gas plays a key role, and it too is being made greener all the time. As from 30 June 2018, Fortum will consolidate Uniper as an associated company.
Why aren’t renewable energy solutions being taken into use on a wider scale? We are working every day towards this in many ways.
We have a common goal with others who share the climate concern: reducing carbon dioxide emissions and replacing the use of coal. A lot of development is also needed for new technologies and investments in tried and true low-carbon production forms as well as in transmission systems – power grids and gas pipelines. With Uniper, Fortum’s share of carbon-free production grows by approximately 60%. Our goal is to develop a common strategy for Fortum and Uniper by the end of the year 2020. +358 40 5151 531 We have a common goal with others who share the climate concern: reducing carbon dioxide emissions and replacing the use of coal. A controlled transition to low-carbon and carbon-neutral energy gives us time to develop renewable energy and new technologies, like hydrogen technology and the development of gas to minimise emissions. Rauno Tiihonen, Manager, Investor Relations, tel. Uniper’s hydro, nuclear and gas power is needed to realise Europe’s energy transition. We invested 401 million euros in carbon dioxide-free production in 2019 – one hundred million more than in 2018.
Fortum wants to drive the change towards a cleaner world.