Sources say that the German Economy Ministry is open to the idea of a SEFE-Uniper tie-up.

According to two sources familiar with the situation, the German economy ministry, which is responsible for the ownership of former SEFE Gazprom, would be open to combining the company with a bailed-out Uniper.

Deliberations about a partial merger are taking place as the German government, which owns both companies after saving them for a total of 19.8 billion euro ($23.4 billion), during Europe's Energy Crisis, is considering exit options.

One person said that while the German economy ministry was in favor of a tie up scenario, the finance ministry in Germany, which holds 99.12% of Uniper, is more sceptical.

The second person stated that a decision could be made within a few weeks.

Berlin has been asked by the EU to reduce its ownership of both entities from a maximum 25% plus one share to no more than 25% plus one in 2028. Separate listings and divestments are among the possible options.

Two sources with knowledge of the situation said that one idea being discussed is to create a German giant by combining the assets of both companies in the areas such as gas trading, storage, and procurement.

Both the finance ministry and Uniper declined comment.

The Economy Ministry was not available to comment immediately.

SEFE controls 4,200 km (2,610 mi) or 10% of Germany's network, while Uniper, the top gas importer in Germany, operates 2,610 miles (4,200 km). Each company operates around a quarter each of Germany's storage capacity and has substantial commodity trading desks.

SEFE stated that it had appointed advisors to oversee the reprivatisation of the process. These appointments were made without regard to individual preferences.

In 2022, SEFE and Uniper will be nationalised to guarantee the security of supply following Russia's invasion in Ukraine.

Manager Magazin reported earlier that the Economy Ministry was in favor of a possible Uniper-SEFE merge.

(source: Reuters)