Hungarian state-owned energy company MVM has reportedly reached an agreement to acquire E.ON Energie, the gas and electricity supply business of the German group E.ON in Romania. The official announcement of the deal is anticipated after Romania’s December elections. MVM also aims to acquire E.ON’s distribution operations in the future.
Speculation about E.ON selling its supply operations in Romania first surfaced in March, with gas producer Romgaz expressing interest in the acquisition. E.ON CEO Leonhard Birnbaum indicated that the company was exploring the option due to a deteriorating risk-return ratio stemming from frequent changes in the energy price capping scheme. While E.ON had previously negotiated with Romgaz and OMV Petrom, MVM emerged as the most likely buyer.
E.ON Romania SA holds 68.18% of the company’s shares, with the Ministry of Energy owning the remaining 31.82%. However, Romanian Minister of Energy Sebastian Burduja has downplayed the sale rumors, stating that E.ON has not yet made a decision regarding its energy supply business. Burduja emphasized that any transaction would be carefully analyzed by the Romanian government and relevant authorities.
E.ON’s supply division serves approximately 3.4 million customers, holding a 41% share of the gas market and a significant presence in the electricity sector. In 2022, E.ON Energie Romania reported a loss of RON 356 million (€71 million) on revenues of RON 13.7 billion (€2.75 billion).
MVM Group, Hungary’s second-largest company, operates in 23 countries and employs over 18,000 people. MVM CEO Karoly Matrai has stated the company aims to become the leading energy provider in the region by 2035, focusing on Serbia, Romania, and the Balkans, while also considering securing LNG capacity in Germany or Poland.
Despite a decrease in overall revenue from HUF 7.6 trillion (€13 billion) in 2022 to HUF 5.1 trillion last year, MVM’s profits surged to HUF 369 billion from HUF 73 billion in the same period.
