MVM to acquire stake in national utility ENKSZ without GVH oversight

Telco

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.

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