Romanian committee officially against Hungary's MVM plans to take over E.ON's local subsidiary

The Foreign Direct Investment Review Commission (CEISD) confirmed on August 20 that it had decided not to approve the transaction by which Hungarian state-owned MVM intends to acquire the gas and electricity supply division of E.ON Energie Romania.

"Following the conclusions resulting from the detailed research procedure, CEISD decided to submit to the Supreme Council of National Defense (CSAT) the proposal not to approve the notified operation," the institution reported, according to Ziarul Financiar.

The commission had been notified by the Romanian Ministry of Energy, which argued in January that the transaction raises security concerns through its potential to undermine Romania's energy independence and foster external influences hostile to the European Union.

MVM announced on December 16 that it had reached an agreement with the Germans from E.ON to take over the supply division E.ON Energie Romania, a business with 3.4 million customers, for over EUR 200 million. The transaction requires the consent of the Romanian state.

MVM Zrt. has extensive business relations with Gazprom and Rosatom, Russian companies under international sanctions, through which Hungary maintains a high dependence on Russian natural gas and nuclear technology, the Romanian Ministry of Energy stated in January.

Elements of "decisive influence, shadow control, influence by economic dependence and effective control" were identified, both within MVM Group and the company through which the majority stake in E.ON Energie Romania is intended to be purchased, according to the ministry's remarks against the deal.

(Photo source: Facebook/E.ON)