Translated material
Rein for the energy giant
E.ON and MOL fulfilled the conditions of Brussels
Yesterday it became known that the European Commission allowed the world's largest private energy concern E.ON from Dusseldorf to buy the gas business of the Hungarian oil and gas company MOL. Under the terms of last year’s agreement between E.ON and MOL, the German company acquired MOL’s division in the field of gas transportation, sales and distribution, gas storage capacity, as well as a stake in a joint venture with Gazprom - Panrusgaz, for $1.16 billion. importing gas from Russia to Hungary. Gazprom also laid claim to these MOL assets.For several months, the deal, which was essentially ready, was in jeopardy due to a possible ban from Brussels on its conclusion. Both the buyer and the seller have repeatedly expressed their readiness to impose antitrust restrictions on themselves. Thus, E.ON Ruhrgas voluntarily undertook to clearly distinguish between the business areas related to gas production and transportation, which remained in MOL, and the wholesale trade and storage units it acquired.
As a result, the competition authority in Brussels approved the transaction, issuing the buyer, i.e. E.ON, behavioral conditions. European officials saw a potential monopolization opportunity in the combination of MOL's dominant position as a natural gas wholesaler and storage company, on the one hand, and E.ON as a major seller of gas and electricity, on the other. As it became known yesterday, E.ON will sell a “significant volume” of gas on the market at free prices. In particular, the German company will have to sell 1 billion cubic meters of gas per year for eight years and sell half of the gas contracted under a ten-year agreement with MOL (another 1 billion cubic meters of gas per year). Thus, the concern will sell 2 billion cubic meters of gas per year on the market and will sell 16 billion cubic meters by 2015.
The largest shareholder of MOL is the Hungarian government (owns 11.8% of shares). The second largest stake (9.1%) is owned by the Austrian energy company OMV. Slovakian Slovintegra owns 8%, Alliance Capital Management - 6.6%, Capital Group - 5.3% of shares.