Hungary: EC approved acquisition of Czech subsidiary of Innogy

30. October 2020. / SEE Energy News

The European Commission (EC) concluded that the proposed acquisition would raise no competition concerns, given the companies’ moderate combined market position resulting from the proposed transaction. The EC has approved the acquisition of 100 % capital of the Czech subsidiary of German energy company Innogy by state-owned Hungarian Electricity Works (MVM).

Back in July, when the agreement on the acquisition was signed, MVM said that it will acquire Innogy’s electricity generation assets, as well as its wholesale and e-mobility portfolios. Innogy Ceska Republika (ICR) is the Czech biggest natural gas trader and is strengthening its position on the electricity market. ICR serves more than 1.6 million residential and commercial customers.

MVM will acquire Innogy’s electricity generation assets, as well as its wholesale and e-mobility portfolios, which is considered to be a milestone in the group’s strategy to expand in the region and become the leading energy company in Central and Eastern Europe.

MVM CEO Gyorgy Kobor said that Romania and Czechia, apart from western Balkans, are among countries with potential acquisition targets for the company. Reportedly, MVM is among the companies which submitted binding bids for the acquisition of Romanian assets of Czech energy company CEZ.

 

 

 

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