E.ON companies sold to Hungarian state firm

E.ON has concluded an agreement to sell its 100% stakes in E.ON Földgáz Trade and E.ON Földgáz Storage to MVM Hungarian Electricity Ltd. The purchase price for both companies, including the assumption of debt, is around €870 million.

A press statement ny E.ON says its Földgáz Trade is Hungary’s largest gas supplier and has gas procurement contracts with domestic and foreign producers. E.ON Földgáz Storage has a storage capacity of 4.2 billion cubic meters, making it the country’s largest provider of gas storage services. The two companies are based in Budapest and together employ about 250 people.

E.ON CFO Marcus Schenck said of the deal: “The sale of our gas companies in Hungary further sharpens the focus of our business in Europe. Through our E.ON Hungária subsidiary we continue to supply energy to about 3 million customers in Hungary.”

The transaction, which is subject to antitrust and regulatory approval, is expected to close in the second half of 2013.