Gov't blocks VIG takeover of Aegon businesses in Hungary
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Vienna Insurance Group (VIG) on Wednesday said approval of its acquisition of peer Aegon's businesses in Hungary was denied by the interior ministry, state news wire MTI reports.
Under state-of-emergency powers vested by parliament, Hungary's government has been equipped with legal tools to block foreign takeovers of domestic companies.
VIG said it had been "in constructive talks" with the finance minister as part of the approval process, adding that the interior ministry's measure was "in contradiction with the course of the talks to date".
"Vienna Insurance Group expects that this issue will be resolved positively in the near future," it added.
VIG said in November it agreed to acquire the businesses of Dutch peer Aegon in Hungary, Poland, Romania, and Turkey for a price of EUR 830 million. VIG will take over Aegon's general and life insurance companies as well as pension funds, asset management, and service companies in the countries. The acquisition would make VIG market leader in Hungary, the insurer noted.
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