Exclusive-Siemens Energy secures provisional deal for guarantees – sources

BERLIN/FRANKFURT (Reuters) – The German government, Siemens AG and other parties involved in talks to cover billions of euros in project-related guarantees for Siemens Energy, have agreed a deal in principle, three people familiar with the matter said.

Some details of the agreement are still being discussed, the people said, adding Siemens AG, Siemens Energy’s top shareholder with a 25.1% stake, was prepared to help by providing some of the guarantees.

The agreement still needs to be formally drawn up and approved by all stakeholders, which could still take some time, the people said.

Siemens Energy in October disclosed talks with the German government, banks and Siemens AG over what sources said were 15 billion euros ($16 billion) in guarantees for project and warranty bonds needed to safeguard the company’s 109 billion euro order book.

Siemens Energy declined to comment, referring to comments by German Chancellor Olaf Scholz on Wednesday saying a deal could be reached very soon if all parties were to share the responsibility.

A spokesperson for Siemens AG said the company remained in “very constructive talks to define the best possible solution in the interests of all parties involved”.

Germany’s Economy Ministry also said that talks were ongoing.

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(Reporting by Andreas Rinke and Christoph Steitz; Editing by Matthias Williams and Emelia Sithole-Matarise)