Germany

FSG Nobiskrug shipyards has received several offers from potential investors. These are industry-related companies from Germany, not financial investors, MarineLink.com reported. This was reported by the provisional insolvency administrators Dr Christoph Morgen and Hendrik Gittermann at an event in Rendsburg on 17 January. The occasion was the visit of Schleswig-Holstein's Prime Minister Daniel Guenther and State Minister of Economic Affairs Claus Ruhe Madsen to a staff meeting at the invitation of the workers’ union “IG Metall Rendsburg”.

Germany’s economy contracted for a second year in a row in 2024, underlining the scale of the challenge that will face a new government after elections due in February, including the possibility of fresh tariffs on exports to the U.S., the Wall Street Journal reported. Economic output in Europe’s largest economy sank 0.2% last year after it declined 0.3% in 2023, the first two-year contraction since 2003, the federal statistics agency said Wednesday. That performance contrasts with the U.S., where growth has been surprisingly rapid over the same period.

German auto parts supplier Webasto SE is kicking off negotiations for a far-reaching overhaul under the aegis of a chief restructuring officer in response to the “ongoing crisis” in the automotive industry, according to a statement Jan. 13, Bloomberg News reported. Webasto reached a stabilization agreement with bank lenders and holders of its Schuldschein notes on Dec. 23, paving the way for a more holistic restructuring, the statement said. Johann Stohner from consultancy firm Alvarez & Marsal will be appointed chief restructuring officer from Jan. 15 to manage the process.

One of the German lenders that saw its riskiest type of debt slump when concerns about the state of US commercial real estate market spread across the world last year, is now looking to replace the bond, Bloomberg New reported. Aareal Bank AG is offering to buy back a €300 million ($308 million) so-called Additional Tier 1 bond and exercise the option to repay it in April if any of it is left outstanding, it announced on Tuesday. This is contingent on issuing new AT1s denominated in U.S. dollars.

Berlin has sounded out potential buyers for Uniper in a deal that could see the government selling its entire holding in the $18.8 billion energy utility, Reuters reported. Germany's government, which owns 99.12% of the company after nationalising it in 2022 during Europe's energy crisis, is pursuing a partial stake sale, or re-IPO, of around 25% as a preferred option, but is also weighing exiting its holding in one go. Parties that have been approached about a full sale include New York-headquartered Brookfield.

Germany is grappling with its worst wave of bankruptcies since the 2008 financial crisis, as 364 major companies declared bankruptcy in 2024, marking a dramatic 30% increase from the previous year, AL24News.com reported. The economic downturn has also led to a hiring freeze across many industries, with fewer German companies recruiting new employees. Meanwhile, the number of firms implementing job cuts is rising steadily, affecting nearly every sector.

German investment group Mutares SE & Co. said that its portfolio company Serneke Sverige AB has filed for bankruptcy in Sweden in the latest collapse of a builder in the biggest Nordic country, Bloomberg News reported. The filing at the Gothenburg District Court follows a “drastic financial deterioration during the second half of 2024,” according to a statement on Wednesday. The Swedish construction and real estate unit was agreed to be bought from Serneke Group AB in July last year and the transaction was completed in November.

German inflation accelerated more than anticipated last month, backing the European Central Bank’s plans to keep cutting interest rates only gradually, Bloomberg News reported. Consumer prices rose 2.9% from a year ago in December, up from 2.4% in the previous month. The acceleration was driven by energy and food costs, the statistics office said. German short-term yields pushed higher after the release. The yield on two-year debt was up four basis points at 2.2%, while traders trimmed ECB rate-cut bets slightly.

Germany’s jobless rate held steady in December despite the continuing specter of jobs losses at major manufacturing firms, the Wall Street Journal reported. Germany’s adjusted unemployment rate was stable at 6.1% in December, data from the Federal Employment Agency showed Friday. However, there are indications the jobs market is cooling. Jobless claims ticked up 10,000 in December, on an adjusted basis, more than the 6,000 in November. Registered job vacancies stood at 654,000, around 59,000 fewer than the same point last year.

German air taxi manufacturer Volocopter has declared insolvency as it seeks new funding, the company announced from its headquarters at Bruchsal near Stuttgart, DPA International reported. "The company needs funding that will allow it to take the final steps to entering the market," the new court-appointed insolvency administrator said. Volocopter still needs type certification from the European Union Aviation Safety Agency (EASA) for its electrical vertical take-off and landing (eVTOL) aircraft to be allowed to carry passengers.