Europese Commissie onderzoekt overname van Hongaars gasbedrijf door Duitse energiegigant E.ON (en)

The European Commission has opened a detailed investigation under the EU Merger Regulation into the planned acquisition by German energy group E.ON of the gas wholesale and storage activities of Hungarian oil and gas group MOL. The Commission's initial market investigation has found that the proposed transaction could create significant competition concerns at all levels of the gas and electricity supply chain in Hungary, given the horizontal and vertical overlaps between the two companies' activities. The decision to open an in-depth inquiry does not prejudge the final result of the investigation. The Commission now has 90 working days (until 17th November 2005) to take a final decision on whether the concentration would significantly impede effective competition within the European Economic Area or a significant part of it.

"The energy sector is essential for European competitiveness", commented Competition Commissioner Neelie Kroes. "It is therefore crucial that the Commission carefully analyses the competitive impact of this take-over, in the context of the ongoing process of breaking down barriers to a fully-functional Single Market for energy".

E.ON is a German privately-owned energy company with a focus on the supply of electricity and gas. In Hungary, E.ON is essentially active on the gas and electricity retail markets through its control of several regional distribution companies.

MOL is an integrated oil and gas group primarily active in Hungary on the markets for natural gas, oils, fuels and chemicals. MOL is in particular the incumbent gas supplier in Hungary.

Through this transaction E.ON would acquire MOL's gas wholesale, trading and marketing activities, MOL's gas storage activities and MOL's shareholding in Panrusgaz, a gas trading company jointly owned with Gazprom.

During its initial investigation, the Commission has identified serious risks that the change of control over these businesses may result in a significant impediment to competition as it would bring about E.ON's vertical integration on the whole gas supply chain. In particular, the proposed transaction may strengthen the control of the new entity over all the gas resources available in Hungary, both domestic and imported. This could lead to a serious risk of exclusion of competitors on the downstream gas and electricity markets and to a loss of potential competition on the gas procurement and wholesale markets. The Commission is therefore concerned that the merger could impede the emergence of effective competition in those markets, thereby undermining the benefits of the on-going liberalisation of the energy sector in Hungary.

On the basis of these concerns, the Commission has decided to open a second phase investigation in order to carry out an in-depth assessment of the effects of the transaction on the Hungarian gas and electricity markets.