2023-10-27 16:26:12
The German federal government is pushing the envelope in negotiations about aid for the ailing energy technology group Siemens Energy. The talks were very good and trusting, said German Chancellor Olaf Scholz on Friday in Brussels. The company is very important. He didn’t give any details. “We are in intensive discussions,” said a spokeswoman for the Ministry of Economic Affairs.
Government spokesman Wolfgang Büchner emphasized the importance of the company, which is active in both the classic power plant business and wind energy. “The federal government is aware that Siemens Energy is a company that is relevant to the transformation of Germany as a business location.” The negotiations are close and trusting.
The company, which is struggling with billions in losses, confirmed talks with the federal government about state guarantees on Thursday. The group is conducting preliminary discussions with various parties, including partner banks and the federal government. There is an increasing need for guarantees, particularly due to the increasing orders for gas turbines and power grids.
The government did not want to give any details about the negotiations or a timetable. On November 15th, the group will present its balance sheet for the 2022/23 financial year. The problems at the wind energy subsidiary Siemens Gamesa, which have been unresolved for years, have once again pushed the company deep into the loss zone. On November 21st, the board wants to appear before investors at a capital market day.
The “WirtschaftsWoche” (WiWo) and the “Spiegel” first reported on Thursday about discussions between Siemens Energy and the federal government. Siemens Energy is seeking guarantees of up to 15 billion euros, according to the “WiWo”. The news caused Siemens Energy shares to fall by up to 40 percent on the stock market. On Friday, the shares were up almost ten percent at times.
It was heard in government circles that the government wanted to help and not let Siemens Energy die. One topic in the discussions was how the shareholders would participate. The former parent company Siemens, which still holds a blocking minority of 25.1 percent in the energy technology group, apparently does not want to participate, it was said in “Spiegel”. The federal government is upset about this attitude. Siemens did not want to comment on this.
Ifo President Clemens Fuest criticized the possible state aid. “There is no convincing justification for the state to support Siemens Energy financially or with guarantees,” Fuest told Reuters. It is the task of the creditors and shareholders to restructure the company and waive claims. In addition, wind turbines could also be imported from other countries if Siemens Energy stops production. Self-sufficiency in this area is unnecessary and not necessary for the energy transition.
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