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EC extends review of MÁV Cargo purchase

The European Commission has extended by ten days its competition review of the purchase of MÁV Cargo, the spun-off freight unit of state-owned Hungarian railway company MÁV.

The review of the privatization by Rail Cargo Austria came because of commitments made by Rail Cargo Austria, Dow Jones reported from Brussels on Tuesday.

The new deadline is October 13.

The Commission would not specify what the commitments were, but these often include divestments in areas of high market concentration, Dow Jones said.

Rail Cargo Austria, in a consortium with GySEV, a railway company owned by the states of Austria and Hungary, won a bid for MÁV Cargo with an offer of Ft 102.5 billion in November, 2007.

The contract for the deal was signed in January. Rail Cargo Austria also promised to invest Ft 43.5 billion in the company within five years. (MTI – Econews)