Hungary 's state-owned utility MVM Zrt. said Tuesday that it will buy a minority stake in Fogaz Zrt., which supplies natural gas to 820,000 households and business customers in Budapest , from German utility firm RWE AG's (RWE.XE).

MVM will pay 41 billion forints ($187.4 million) for RWE International B.V.'s 49.8% stake in Fogaz, it said. MVM will finance the purchase from funds it will receive through the national asset management company MNV Zrt.

Following the transaction, the Budapest municipality will continue to hold its further 50% stake in the company, said MVM.

The state-owned company also said it will acquire a 50% stake in Panrusgaz Zrt., which is responsible for natural gas imports from Russia, from German energy company E.ON Ruhrgas Portfolio GmbH for HUF940 million. Hungary is heavily dependent on natural gas imports from Russia .

Following the deal, MVM will be co-owner of the company with Russia 's OAO Gazprom Export, in turn owned by OAO Gazprom, and Vienna-based natural gas firm Centrex Europe Energy & Gas AG.

The deals are in line with the policy of the ruling Fidesz party to buy stakes in companies it regards as of strategic importance, including utilities. It says the companies were erroneously privatized as part of Hungary 's move to a market economy after the fall of a command economy in 1989.

 Hungary is in talks with six or seven utilities about a state buyback, Prime Minister Viktor Orban has said. The state has already bought back a municipal water utility firm from France 's GDF Suez SA and the Hungarian natural gas arm of German energy company E.ON SE.
Ακολουθήστε το energia.gr στο Google News!Παρακολουθήστε τις εξελίξεις με την υπογραφη εγκυρότητας του energia.gr

Διαβάστε ακόμα