Czech Acquisition by Hungarian Electricity Company MVM

Following approval by the European Commission, Hungary's MVM Co. Ltd. has acquired the 100% ownership of innogy Česká republika a.s.

A statement by MVM Group points out that MVM Co. Ltd. has acquired the largest natural gas trader in the Czech Republic, which is increasingly present in electricity trading market as well. The Czech company supplies more than 1.6 million retail and corporate customers. The transaction also includes innogy Česká republika‘s CHP assets, together with the wholesale and e-mobility portfolio.

“Today marks a strategic achievement for us in MVM’s regional expansion. As the shareholder of a key player in the Czech market, MVM further strengthens its position in the Central Eastern European market, providing a strong background and continuity for Czech innogy and its customers, who can continue to count on services of the highest standard. Working together with the company’s management, we aim to explore and benefit from new synergies that facilitate the development of innogy in the Czech Republic and promote MVM’s increasingly important role in the region. I am delighted and excited to work together with our Czech colleagues, whom I respectfully welcome to the MVM family,” György Kóbor, Chairman and CEO of MVM Co. Ltd. said.

The CEO of innogy Česká republika a.s., Tomáš Varcop highlighted that “together with MVM, we will be able to develop our products and services to an even higher standard for our customers, and to further increase our market position. For this, MVM ensures a stable background and opens new opportunities. Through MVM, our business portfolio can expand with new activities in areas including power generation, European wholesale markets, natural gas storage or LNG.”

On 10 July 2020, the parties signed a sale agreement on the transaction, which was closed following the approval of the European Commission. For the Czech innogy customers, the ownership change will not involve any contract modification, in addition the shareholder, MVM continues to work together with the former management of the company.