Media report: German state supports Siemens Energy with 7.5 billion euros in guarantees
According to a report in the Handelsblatt, the decisive details in the battle for state aid for Siemens Energy have also been clarified. As requested, the energy technology group will receive 15 billion euros in guarantees for major projects, the business newspaper reported, citing financial circles.
Twelve billion of this was provided by the banks, which in turn received counter-guarantees of 7.5 billion euros from the federal government. "A solution has also been found for the remaining three billion euros," the report said. The agreement is to be announced on Wednesday, when Siemens Energy will report on its business figures for 2022/23.
Reuters had already reported on an agreement in principle on Thursday.
The major shareholder Siemens AG will only participate indirectly in the guarantees, the newspaper also reported. The German government had demanded the involvement of the former parent company. Siemens would buy an 18 percent stake in the joint Indian subsidiary Siemens Ltd from Siemens Energy for more than two billion euros, with a further five percent serving as collateral for the guarantees. In addition, the Munich-based technology group Siemens Energy would defer the annual payments for the use of the trademark rights.
- The German state is providing 7.5 billion euros in guarantees to support Siemens Energy in major projects, as reported by media outlets.
- The agreement for the 15 billion euros in guarantees for Siemens Energy includes 12 billion from banks, with the German state providing counter-guarantees.
- Siemens AG, the major shareholder, will only indirectly participate in the guarantees for Siemens Energy, according to the report.
- As part of the agreement, Siemens AG will purchase an 18% stake in Siemens Ltd from Siemens Energy for over two billion euros, and also provide five percent as collateral for the guarantees.
- The German government had demanded the involvement of Siemens AG in the guarantees, and Siemens Energy will also defer annual payments for the use of trademark rights.
Source: www.ntv.de
