EC says Hungary violated EU merger regulation
The European Commission yesterday said it "preliminarily concluded" that Hungary violated the European Union's merger regulation when authorities vetoed the acquisition of the local business of Dutch insurer Aegon by Vienna Insurance Group (VIG), according to novekedes.hu.
VIG announced in November 2020 that it agreed to acquire the businesses of Aegon in Hungary, Poland, Romania and Turkey for a price of EUR 830 million, a deal that would have made VIG market leader in Hungary.
In April 2021, VIG said the Interior Ministry denied its acquisition of Aegon's business in Hungary. Under state-of-emergency powers vested by parliament, Hungary's government has been equipped with legal tools to block foreign takeovers of domestic companies.
The EC noted yesterday that it has "exclusive competence to examine concentrations with a Union dimension" and said that member states may only take measures "to protect legitimate interests provided that such measures are compatible with the general principles and other provisions of EU law, and are communicated to the Commission except for limited instances."
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.