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Romanian Nationalists up in Arms over Energy Giant’s Planned Acquisition by Hungarian MVM

Hungary Today 2024.12.19.

The planned acquisition of E.ON Energie Romania by Hungary’s state-owned MVM Group (Hungarian Electrical Works Plc.) has sparked significant debate in Romania, with some politicians even complaining about alleged threats to national security and financial transparency. Their main point of contention? The price offered is “too high,” but some politicians even called the planned sale “treason.”

The transaction, valued at EUR 205M, involves a major energy supplier with 3.4 million customers. Romanian authorities are scrutinizing the deal, which cannot proceed without state approval, according to Maszol.ro.

Energy Minister Sebastian Burduja emphasized the importance of national security, stating,

we will protect our national interest, which does not mean we are not open to cooperation, but the national security of the country will always come first.”

The politician criticized the unusually high price MVM offered, alleging it was far beyond the asset’s value. “You cannot pay two, three, or even ten times more for something if it’s not worth that much. It is difficult to justify such a transaction,” he noted. Domestic competitors like Romgaz and OMV Petrom were reportedly unable to match MVM’s offer, raising further questions about the deal’s legitimacy. E.ON Energie Romania, a key player in the energy sector, provides electricity and gas to millions. Its acquisition by MVM has placed the company at the center of a geopolitical and economic debate.

As Maszol.ro highlights, the transaction’s review by the Foreign Direct Investment Committee underscores its complexity, with authorities analyzing financing sources and energy supply plans.

The sale has also drawn criticism from opposition parties. As Krónika reports, Marius Lulea, vice-president of the Alliance for the Unification of Romanians (AUR), accused Prime Minister Marcel Ciolacu of “treason” for permitting the sale to a Hungarian company. Lulea linked the transaction to Hungary’s reliance on Russian energy, questioning whether “Orbán or Putin” would ultimately control E.ON. He also condemned the government’s broader economic management, citing a “catastrophic” RON 150B deficit and asserting, “next year will be very, very difficult.”

The acquisition of E.ON Energie Romania has become a flashpoint for political and economic tensions in Romania.

While authorities review the deal, concerns over national security and financial transparency remain central to the debate, reflecting deeper issues of trust in government and foreign investment.

Hungarian Acquisition Bid for E.ON's Romanian Utilities Sparks Concerns
Hungarian Acquisition Bid for E.ON's Romanian Utilities Sparks Concerns

Romanian officials, including Energy Minister Sebastian Burduja, have expressed caution.Continue reading

Via Krónika.ro, maszol.ro; Featured Image: Pixabay


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