State-owned Hungarian energy company can conquer Romania’s market after large-scale acquisition

State-owned Hungarian energy company MVM allegedly shook hands with the German E.ON group to buy its Romanian subsidiary, E.ON Energie. The subsidiary is the second biggest on the market with a 41% market share, but the Romanian government is concerned about the transaction due to the Orbán cabinet’s strong Russian ties. Will the Talgo case happen again?

State-owned Hungarian energy company buying Romanian top energy company

According to sources sharing information about the planned acquisition with Hotnews.ro, the state-owned Hungarian energy company MVM would buy E.ON Energie. They will sign the documents only after the Romanian elections. The first round of the presidential elections will be on 24 November. The second round has been set to take place on 8 December. On 1 December, Romanian citizens will cast their ballots in the parliamentary elections. However, German E.ON and Hungarian MVM would only like to announce the transaction after the presidential and parliamentary elections.

Sources talking to Hotnews about the large-scale acquisition said the Hungarian company wanted to obtain E.ON Energie’s provision business and planned to buy the distribution activities. Before, E.ON conducted talks with other companies like Romgaz and OMV Petrom about the transaction. Allegedly, they shook hands with the Hungarian energy company.

Romanian press wrote that the Ciolacu cabinet is concerned about the developments. Sources said the prime minister’s office would create a committee to examine the arrangement. Romanian top officials are worried due to the Hungarian government’s Russian ties. Since MVM is state-owned, they suspect risks since they believe there is a chance that millions of Romanian customers may get under the influence of the Hungarian government having good ties with Putin’s Russia, portfolio.hu wrote in their summary.