EC approves Germany's takeover of Uniper

The German government has been given the go-ahead by Brussels for its takeover of the country's struggling gas importer Uniper.

Uniper ran into financial difficulties after Russia stopped its gas supplies to Germany, forcing the company to buy fuel from elsewhere at much higher prices.

The European Commission said on Friday it had "concluded that the proposed acquisition would raise no competition concerns."

State aid decisions and certain mergers in European Union member countries have to be legally approved by the commission.

In September, German Economy Minister Robert Habeck announced plans for the government to become the majority shareholder in Uniper - up until now owned by Finnish company Fortum - in order to save it from insolvency and threaten Germany's overall gas supplies.

The move is estimated to be costing the government in Berlin more than €30 billion ($31.9 billion).

The takeover is expected to be approved by Uniper's current shareholders on Monday.

The energy giant - which had been Germany's largest importer of Russian gas - supplies gas to more than 100 German municipalities and several large companies, which caused concerns that a failure of the utility could risk the economic viability of its clients.

Uniper reported daily losses of up to €200 million from having to buy more expensive gas.

Berlin is to buy all of Fortum's shares, making the German government the holder of 98.5% of Uniper shares.

Germany also wants to increase Uniper's capital by injecting €8 billion and to raise another €25 billion by issuing more shares after the takeover.

The European Commission can still announce conditions for the state aid at a later stage.

In November Uniper said it would try to hold Russia's Gazprom Group responsible for failing to supply gas, applying for arbitration before an international arbitration court.

Finland's state majority-owned energy giant Fortum in September signed an agreement to sell its entire stakes in the gas importer Uniper to the German government.