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Opus agrees to acquire HUF 100 bln E.ON asset in Hungary

Listed holding company Opus Global announced today (Friday) that it has agreed to acquire Hungarian electricity distributor E.ON Tiszántúli Áramhálózati Zrt. (TITÁSZ) from German utilities giant E.ON, state news wire MTI reports.

Opus will acquire TITÁSZ in a series of transactions expected to close in Q3 2020, according to the disclosure.

In a separate announcement, Opusʼ PR agent said TITÁSZ had assets of HUF 100 billion. The agent added that Opusʼ board aims to strengthen the companyʼs position on the energy market and ensure the groupʼs stable profitability.

Opus plans to finance the acquisition partly from its own resources, possibly from the liquidation of some of its investments, and partly from proceeds from the issue of corporate bonds, the agent said.

The agent noted that E.ONʼs divestment of some Hungarian assets is related to conditions stipulated by the European Commission for approval of E.ONʼs acquisition of Innogy from German peer RWE.

When the EC approved the deal in September, it acknowledged that E.ON and RWE are two of three major retailers active in the country and "exert a significant competitive pressure on each other that would be lost with the merger".

To remedy the situation, E.ON committed to divest its business in the retail supply of electricity to unregulated customers in Hungary, including all assets and staff.

Opusʼs PR agent said the company will capitalise on synergies presented by overlap between the service areas of TITÁSZ and TIGÁZ, a gas distributor in the same region which Opus acquired in the summer. The agent added that German car maker BMW is building a big plant in TITÁSZʼs service area.