Ministry of Energy has notified CEISD about MVM Grup's intention to acquire E.ON Energie Romania

The Ministry of Energy has notified the Commission for the Examination of Foreign Direct Investments (CEISD) in connection with the transaction through which the Hungarian state-owned company MVM Group intends to acquire the gas and electricity supply division of E.ON Energie Romania.In a press release sent on Wednesday, the Energy Ministry showed that, following a rigorous analysis, it has identified multiple topics for an in-depth analysis on the possible impact of the transaction on Romania's national security. Thus, the main reasons for notifying CEISD are the Hungarian company's ties with the Russian Federation, the risk of subsequent transfer of E.ON Energie Romania shares to non-EU entities, risks to the company's data and the personal data of over 3 million users, as well as transparency issues with the buyer.With regard to the ties with the Russian Federation, the Ministry of Energy recalls that MVM Group has extensive commercial relations with Gazprom and Rosatom, Russian companies under international sanctions, through which Hungary maintains a high dependence on Russian natural gas and nuclear technology."Elements of "decisive influence, shadow control, influence by economic dependence and effective control" have been identified, both within MVM Group and the company through which the majority stakes of E.ON Energie Romania are to be bought," the press release states.At the same time, the Ministry of Energy argues that, from the analysis of the documentation submitted by MVM, it emerges that the contractual structure and the terms of the transaction create a possibility of subsequent transfer of the shares purchased from E.ON Energie Romania to entities outside the European Union or to other entities that are not the initial parties to the transaction. Thus, the Ministry of Energy warns that this contractual vulnerability may facilitate the indirect transfer of control to economic or political actors that do not comply with the rigor and compliance standards required by European legislation in the field of energy and transparency of transactions.On the other hand, the institution states that the lack of legal and contractual guarantees for the protection of E.ON Energie Romania's data and the personal data of over 3 million Romanian customers has been identified."Incomplete declarations and unclear provenance of the MVM funds for this acquisition were found, raising suspicions about compliance with European anti-money laundering legislation and competition rules. The proposed transaction value also needs to be analyzed. There is evidence that MVM's business relations with companies controlled by the Russian Federation are based on the provision of goods and services at tariffs that generate an indirect capitalization of the MVM group with funds from outside the European Union," the cited source further mentions.In addition, the Energy Ministry points out the conflict with national energy strategies, showing that the information in MVM's documentation to reduce natural gas consumption contradicts Romania's Energy Strategy and the 2024-2028 Government Program, which prioritize the expansion of the population's access to gas networks and the use of domestic resources.The Romanian authorities also maintain that similar transactions have been compared, such as the acquisition of train manufacturer Talgo in Spain, which were rejected because of MVM's ties with Russian entities and the political influence of the Hungarian government. This example reveals a well-documented practice of using strategic acquisitions to strengthen Russia's geopolitical interests in various EU member states, the press release shows."Romania has an obligation to protect its sovereignty and strategic interests. We will not allow critical sectors, such as energy, to become vulnerable to geopolitical or economic games that do not respect our European principles of competition, transparency and single market. We will act firmly and unequivocally to defend Romania's national security and the energy security of the European Union, which must definitively get rid of its dependence on Russian gas. The energy blackmail must remain a sad memory of the past, and the future must be one of real energy independence, not the one invoked by those who, in fact, throw us back into the arms of Moscow. This is true sovereignty: not to depend on anyone. Possibly, let others depend on us. Romania's energy must remain solely at the service of Romanians," Sebastian Burduja, minister of Energy, was quoted as saying in the release.The complaint submitted by the Ministry of Energy to the Commission for the Examination of Foreign Direct Investments (CEISD) is a procedural step in accordance with national and European legislation, which does not infringe the principle of economic freedom, says the Ministry of Energy, which states that it respects the right of legal persons under private law to initiate, negotiate and conclude contracts, subject to compliance with the applicable legislative framework, including the rules on ensuring national security, fair competition and the integrity of the energy supply chain.The MVM Group, the second largest company in Hungary, signed an agreement last December to acquire the household and customer solutions division of E.ON in Romania.According to the agreement, MVM will acquire a 68% stake in E.ON Energie Romania and a 98% stake in E.ON Asist Complet, a press release of the Hungarian group informs.The transaction is expected to be finalized in 2025, after all the necessary approvals had been obtained from the competent authorities. The two companies have decided not to disclose the value of the transaction.The MVM Group is Hungary's main energy supplier, a 100% state-owned company that ranks sixth in Central Europe.E.ON Energie Romania, one of the country's largest suppliers of natural gas and electricity, serves around 3.4 million customers. E.ON Assist Complet is a regional company specialized in energy services, offering solutions for the installation and maintenance of infrastructure.