E.ON and the Hungarian state company MVM Group have reached an agreement regarding the sale of the household and customer solutions division of E.ON company in Romania.
„MVM Group is acquiring the majority stake in E.ON Energie Romania, the main energy provider in Romania. MVM Group and E.ON Group signed on Monday, December 16, 2024, an agreement for the sale and purchase of the household and customer solutions division of E.ON company in Romania. According to the agreement, MVM Group will acquire a 68% stake in E.ON Energie Romania and will take over a 98% stake in E.ON Asist Complet,” the companies stated in a press release quoted by News.ro.
E.ON Energie Romania, one of the largest natural gas and electricity providers in the country, serves approximately 3.4 million customers. E.ON Asist Complet is a regional company specialized in energy services, offering solutions for installing and maintaining infrastructure.
The transaction is expected to be completed in 2025, after obtaining all necessary approvals from the competent authorities. The two companies have decided not to disclose the value of the transaction.
The operational activities of E.ON Energie Romania and E.ON Asist Complet will continue to operate normally, "ensuring high-quality services to partners and customers without interruptions." MVM Group aims to maintain the stability of the acquired operations and contribute to their long-term development, the group specified.
MVM Group is the second largest company in Hungary and ranks sixth in Central Europe. With an active presence in 23 countries, over 19,000 employees, and a portfolio of over 11 million customers, both residential and corporate (including nearly two million in the Czech Republic, Slovakia, and Romania), MVM Group is an important player in the region's energy ecosystem.
MVM Group is state-owned by Hungary. MVM is the energy arm of Viktor Orban's government and has a strong collaboration with state-owned companies in Russia, despite Russia's increasing isolation by the international community in response to the invasion of Ukraine, according to Economedia.
The Hungarian government is the sole shareholder of MVM, according to the independent rating agency Fitch.
Ministry of Energy's Reaction
The Romanian state will use all legal means for a strict evaluation of the possible transaction through which the Hungarian group MVM will acquire E.ON Energie Romania, even though the supply component does not include critical infrastructure elements, the Ministry of Energy announced Monday evening in a press release.
According to the Ministry of Energy, the complex structure of commercial relationships and capitalization sources of MVM will be analyzed, including the capital flows of the Hungarian company, especially those from outside the European Union. Additionally, detailed and rigorous evaluations will be carried out within the Commission for the Examination of Foreign Direct Investments to ensure that any transaction respects Romania's economic and security interests.
In the immediate future, the Minister of Energy aims to meet with MVM's top management to understand the plans regarding the Romanian market, and to explore opportunities where local companies, with a majority state ownership, could play a significant role in partnership for the future development of the Romanian energy sector.
The ministry emphasizes that, as in any EU member state, including Romania, issues related to energy security are a priority, thus special attention will be given to ensure that this transaction respects the fundamental principles of energy security and free competition.