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EU lists serious doubts about OMV taking over MOL

The European Commission has sent Austrian oil and gas group OMV a listing of serious doubts concerning the proposed unsolicited takeover of Hungarian peer MOL, OMV said on Monday.

“We have received the statement of objections from the EU,” OMV spokesman Thomas Huemer said. Partly state-owned OMV, which already holds 20.2% of MOL, has proposed a bid valuing its Hungarian target at $20 billion. MOL has repeatedly rejected the bid, which it considers hostile. The two companies have been in a standoff since summer 2007, when OMV first indicated its takeover plans.

OMV wants to join forces with MOL amid consolidation pressure from Russia and Western majors, saying merging the two companies would improve their standing. MOL said the deal would destroy value for its shareholders. The two companies would have a joint refining capacity in excess of 860,000 barrels of oil equivalent per day (boe/d). (Reuters)