ENKSZ to acquire 50% of ELMŰ- ÉMÁSZ’s retail business by January 1

Deals

Hungaryʼs First National Utilities Company ENKSZ, is set to acquire 50% of ELMŰ- ÉMÁSZ Ügyfelszolgálati on January 1, 2016, Hungarian news agency MTI reported today. The remaining 50% of the shares will be transferred by January 1, 2017, following the approval of the deal at the company’s EGM on December 21.

The Hungarian government signed a declaration of intent with ELMŰ- ÉMÁSZ shareholders RWE AG, RWE Power AG, RWE-Beteiligungs GmbH regarding the acquisition of their universal retail customers in Hungary in May of this year, according to MTI.

The jointly owned ELMŰ-ÉMÁSZ Ügyfelszolgálati was formed on October 20, when universal service providing divisions from the North (ELMŰ) and the south (ÉMÁSZ) were merged into one company, information published on the Budapest Stock Exchange website today reveals. German-owned E.ON and French-owned EDF DÉMÁSZ are currently the only other universal service providers in the electricity market in Hungary, MTI reported.

The Budapest Business Journal reported earlier that such acquisitions are part of a move by the Hungarian government to reshape the country’s gas and electricity markets by pushing out foreign firms so that the state can take control of utility companies.

Universal service providers are defined as household utilities companies that apply a price structure and level controlled by the state.

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