MVM to acquire stake in national utility ENKSZ without GVH oversight
The government has declared the acquisition of a stake in the state-owned national utility Első Nemzeti Közműszolgáltató (ENKSZ) by the (also state-owned) electricity works MVM Group “of strategic importance”, thereby exempting the transaction from Competition Office (GVH) oversight according to a government decree published in the official gazette Magyar Közlöny yesterday, Hungarian news agency MTI has reported.
The government decree justified the move by saying the plan was to create “a national utility system that intends to provide electricity public services organized on a market basis and operating on a sustainable manner in the long-term”.
When signing a deal to acquire regional electricity distributor EDF Démász, from Franceʼs EDF International on December 6, ENKSZ said part of the financing would come from MVM Group, which would later take an equity stake in ENKSZ. ENKSZ acquired stakes in the regulated market businesses of regional electricity distributors Elmű and Émász from Germanyʼs RWE earlier this year.
The state-owned national utility was established by the government in February 2015, and, starting from April of last year, has taken over most of the retail gas market.
It was scheduled to launch services on the electricity market early 2016, and also to enter the district heating market.
Policymakers Cut Central Bank Base Rate by 50 bp to 7.75%
Bulgaria's Household Income, Spending Rise 20% in 2023
Spar Magyarország Revenue Climbs Close to 16% in 2023
Hungary Launches HUF 15 bln Tourism Sector Support Program
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
