Hungary breached European Union merger rules by vetoing Vienna Insurance Group’s (VIG) planned takeover of Dutch insurer Aegon’s local business, the European Commission said on Thursday, outlining its “preliminary position”.
VIG announced in November 2020 that it agreed to acquire the businesses of Aegon in Hungary, Poland, Romania and Turkey for 830 million euros, a deal that would have made VIG the market leader in Hungary. The Interior Ministry rejected the planned takeover in April 2021, according to VIG.
The government can block foreign takeovers of domestic companies under special powers granted to it by parliament.
The EC member states may only take measures “to protect legitimate interests provided that such measures are compatible with the general principles and other provisions of EU law, and are communicated to the Commission except for limited instances,” the EC said in its statement.
It added that
there were “reasonable doubts as to the measure being aimed to protect Hungary’s legitimate interests” and that Hungary’s “reasoning is insufficient”.
The veto “should have been communicated to, and approved by, the Commission before Hungary implemented it,” EC said.
Hungary has ten working days to respond to the EC’s preliminary assessment, and further action may result in an infringement assessment and an order to withdraw the veto, the statement added.
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Source: MTI
2 Comments
The Globalist Elite must be stopped! Brussels is inhibiting Our potential. We made Aegon great in the region, it should be in Hungarian hands
Aegon NV is a Dutch company. Aegon Magyarország Általános Biztositó Zrt is jut an operating subsidiary / division. Aegon is not a Hungarian company as such. Likewise, in Poland it is Aegon TU na Życie S.A. / Aegon Powszechne Towarzystwo Emerytalne S.A. also just a division / subsidiary of the Dutch owners, the principal of which being the Dutch State. Aegon was not and is not Hungarian, so get your facts right.