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Oct 8 (Reuters) - Fortum is set to gain control of German energy firm Uniper after the Finnish state-controlled utility said it will acquire a further 20.5% stake, putting an end to a long-standing deadlock between the companies.
Fortum has been seeking to gain control of the German company since 2017 but Uniper's top management opposed the deal, which also involves activist funds Elliott and Knight Vinke, jointly holding around a fifth of the shares.
Following the deal, valued at around 2.3 billion euros ($2.5 billion), Fortum will own more than 70.5% of Uniper's stock.
"Fortum has today entered into agreements to acquire all the shares held by funds managed by Elliott Management Corporation and its affiliates, Elliott and Knight Vinke Energy Advisors Limited," Fortum said in a statement.
Credit Suisse viewed the deal as positive for Fortum, "as it helps resolving deadlock and delivering synergies," it wrote in a note.
"Leverage to go down as Uniper will be fully consolidated," it added.
Uniper declined to comment.
Shares in the German company fell 6% in early trading, while Fortum's shares rose 2.2%. ($1 = 0.9106 euros) (Reporting by Anne Kauranen in Helsinki and Boleslaw Lasocki in Gdansk; Additional reporting by Christoph Steitz; Editing by Tom Hogue and Louise Heavens)