The Hungarian state will acquire 45 percent stakes in insurers Aegon Biztosító and Union Biztosító, Finance Minister Mihály Varga said on Monday after signing the deal on the acquisition with representatives of Vienna Insurance Group (VIG).
The investment is “hugely advantageous” for Hungary, Varga said in a post on Facebook, noting that Aegon and Union hold a combined 20 percent share of Hungary’s insurance market and have a combined annual revenue of 240 billion forints (EUR 671.8m).
The acquisition serves to increase public wealth and to return strategic assets to state ownership, the minister said.
He added that
between 2002 and 2010, the left-liberal governments had sold off a significant chunk of state assets, privatising roughly 190 companies.
The Fidesz-led government put an end to the sale of state assets, he said, adding that the previous system had been replaced by thoughtful policies.
“Thanks to this, by 2020, the value of state assets increased to 20,000 billion forints from 11,000 billion in 2010,” Varga said.
Hungary’s veto of the acquisition of the Hungarian subsidiaries of Aegon Group by Vienna Insurance Group (VIG) is in breach of the European Union’s merger regulations, the European Commission said on Monday. Details HERE.