Hungarian energy company poised to dominate Romania’s market following major acquisition
State-owned Hungarian energy company MVM is reportedly in talks with the German E.ON group to purchase its Romanian subsidiary, E.ON Energie. The subsidiary holds a significant market share of 41%, making it the second-largest player in the Romanian energy market. However, concerns have been raised by the Romanian government regarding the transaction due to the strong Russian ties of the Orbán cabinet. There are fears that this acquisition may lead to a situation similar to the Talgo case, where a deal was blocked due to political considerations.
Sources familiar with the planned acquisition have revealed that MVM and E.ON are expected to finalize the deal after the upcoming Romanian elections. The presidential elections are scheduled for November 24, with the parliamentary elections following on December 8. The transaction announcement will likely be postponed until after these political events.
It is reported that MVM is interested in acquiring E.ON Energie’s provision business and distribution activities. Previous discussions with other companies like Romgaz and OMV Petrom did not materialize, leading to the alleged agreement between the Hungarian and German energy companies.
The Romanian government, under the Ciolacu cabinet, has expressed concerns about the potential acquisition. A committee is said to be formed to assess the implications of the deal, especially considering MVM’s status as a state-owned entity and its close ties to Russia. There is apprehension that Romanian customers may come under the influence of the Hungarian government, which has strong relations with Putin’s Russia.
The situation is reminiscent of the Talgo case, where Hungary’s attempt to acquire the Spanish train manufacturer was thwarted by Spain due to political reasons. The concern is that history may repeat itself if the Hungarian government’s Russian connections are seen as a threat to the Romanian energy market.
E.ON Energie currently serves 3.4 million gas customers in Romania and holds a significant market share in both the gas and electricity sectors. The decision to sell the subsidiary stems from the challenges posed by the Romanian market, including regulatory uncertainties and changing energy policies.
As discussions between MVM and E.ON continue, the outcome of the acquisition remains uncertain. The Romanian government is closely monitoring the situation to ensure that the interests of the country and its citizens are protected in the energy sector.
