Hungarian company buys German E.ON’s local electricity distributor

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State-owned energy company MVM on Thursday announced an agreement to acquire 100 percent of E.ON Aramszolgaltato, German-owned E.ON’s local electricity distributor for the regulated retail market. The transaction is expected to close in the spring of 2022.

The deal will affect close to 2.5 million customers in the west and east of Hungary. After the deal is closed, MVM will offer nationwide coverage for customers on both the regulated retail gas and electricity markets.

Meanwhile, the government and the Hungarian Chamber of Commerce and Industry (MKIK) have extended their cooperation agreement, the chamber said on Thursday. The chamber said the agreement was aimed at maintaining the growth of the Hungarian economy and the prosperity of Hungarian society.

The document states that the aim is to ensure that economic output remains 2-3 percentage points above the European Union average and that the country’s financial indicators should stay balanced, while keeping the investment rate above 25 percent.

They also agreed on the importance of a work-based society and maintaining close to full employment, as well as making steady improvements in economic competitiveness and productivity while expanding the knowledge-based society.

The agreement also refers to ensuring a

sustainable, business-friendly tax system and further reducing the tax wedge.

The government and chamber have undertaken to review the strategy for small and medium-sized enterprises in response to the challenges of a changed environment brought about by the pandemic.

They also recognise the importance of knowledge transfers between academia, the research sector and the businesses. An Entrepreneurship Innovation Council will be set up to this end. Also R and D and I must be strengthened and tapped by as many Hungarian companies as possible, the agreement says. Further, the bulk of EU funds should be directly used for business development, it adds.