Stuttgart/Brussels – State-owned gas trader SEFE Securing Energy for Europe GmbH (SEFE) can continue to operate as an integrated midstream gas company and pursue its chosen realignment strategy after the European Commission granted state aid approval for a capital injection of around EUR 6.3 billion. To implement the capital injection, an existing KfW loan will be converted to equity.
Immediately prior to this, the European Commission approved the German government’s acquisition of sole ownership of SEFE in corresponding merger control proceedings. This brings to an end the Federal Network Agency’s trusteeship of the company, which has been in place since April 2022. The European Commission’s approval under EU state aid law is subject to several conditions, including a commitment by the German government to present an exit plan by the end of 2023, with the aim of reducing its stake significantly by the end of 2028 at the latest. The German government has also provided an assurance that SEFE will divest or cease its operations in a number of countries. In addition, the company is subject to a ban on making acquisitions and awarding bonuses for a certain period of time.
The German government nationalised the company, formerly trading as Gazprom Germania GmbH, in November 2022 in order to secure Germany’s gas supply.
A CMS team advised the Federal Ministry for Economic Affairs and Climate Action (BMWK) on all legal aspects of this complex procedure. A key focus was on the state aid proceedings, headed by partner Dr Michael Bauer, and the parallel merger control proceedings conducted by a team led by partners Christoff Soltau and Dr Björn Herbers before the European Commission. The scope of advice also included designing and implementing the debt-to-equity swap to recapitalise SEFE, with CMS partner Dr Alexandra Schluck-Amend in the lead role.
CMS has been advising the BMWK since the beginning of the Russian war of aggression against Ukraine on a number of issues related to securing the energy supply in Germany.
CMS Germany
Dr Christian von Lenthe, Lead Partner, Hamburg, Corporate
Dr Alexandra Schluck-Amend, Lead Partner, Stuttgart, Restructuring
Dr Michael Bauer, Partner, Brussels, EU State Aid
Dr Holger Kraft, Partner, Hamburg, Corporate
Dr Hermann Müller, Partner, Hamburg, Public Law
Christoff Soltau, Partner, Hamburg
Dr Björn Herbers, Partner, Brussels, both Merger Control
Dr Marc Riede, Partner, Hamburg, Banking & Finance
Dr Maximilian Hacker, Partner, Düsseldorf
Manuel Nann, Associate, Stuttgart
Pit-Johannes Wagner, Associate, Stuttgart
Christoph Simmat, Associate, Stuttgart, all Restructuring
Roxana Mina Kruse, Senior Associate, Brussels, EU State Aid
Dr Barbara Wössner, Partner, Stuttgart
Dr Matthias Löhle, Counsel, Frankfurt/Main
Dominik von Zehmen, Counsel, Frankfurt/Main
Dr Stefan Kühl, Associate, Hamburg, all Corporate
Dr Rolf Hempel, Partner, Stuttgart, Energy
Moritz Pottek, Senior Associate, Brussels
Dr Robert Bodewig, Associate, Hamburg, all Merger Control
Dr Julia Runge, Principal Counsel, Hamburg
Nicolai Bischof, Senior Associate, Hamburg, both Finance
Kai Neuhaus, Partner, Brussels, Sanctions Law
Dr Joachim Kaetzler, Partner, Frankfurt/Main
Charlotte Salathé, Senior Associate, Frankfurt/Main, both Compliance
Susanne Schwalb, Partner, Munich
Dr Tilman Niedermaier, Partner, Munich
Prof. Klaus Sachs, Partner, Munich
Nika Rassadina, Senior Associate, Munich
Eric Bremer, Associate, Munich, all Investment Protection
Dr Volkmar Wagner, Partner, Stuttgart
Dr Sven Brockhoff, Counsel, Stuttgart
Jan Gröschel, Senior Associate, Hamburg
Dr Florian Kuhlmann, Senior Associate, Hamburg
Dr Arno Görlitz, Associate, Hamburg, all Public Law
Sören Seidel, Partner, Hamburg
Dr Philipp Nonnenmühlen, Senior Associate, Hamburg
Kristina Walter, Associate, Hamburg, all Employment
Dr Matthias Schlingmann, Partner, Hamburg
Marwin Berrer, Senior Associate, Hamburg
Sören Thaden, Associate, Hamburg, all Litigation
Dorothée Janzen, Partner, Hamburg
Christoph Zarth, Partner, Hamburg
Dr Gerald Gräfe, Partner, Stuttgart
Dr Johann Sieber, Senior Associate, Stuttgart, all Commercial
Dr Nikolas Gregor, Partner, Hamburg
Petra Goldenbaum, Counsel, Hamburg, both Intellectual Property
Max-Julian Wiedemann, Associate, Hamburg, TMC
Press Contact
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