The Ministry of Energy notified the Commission for the Examination of Direct Foreign Investments (CEFDI) concerning the transaction through which Hungarian state company MVM Zrt. (MVM Group) intends to acquire the gas and electricity supply division of E.ON Energie Romania.
In a statement sent on Wednesday, the Ministry of Energy showed that, following a rigorous analysis, it identified multiple topics for in-depth analysis regarding the possible transaction’s impact on Romania’s national security. Consequently, the main reasons for notifying the CEFDI are the Hungarian company’s links with the Russian Federation, the risk of the subsequent transfer of E.ON Energie Romania’s shares to non-EU entities, risks to the company’s data and the personal data of over 3 million users, but also issues regarding the buyer’s transparency.
MVM – Russia links
Referring to the ties with the Russian Federation, the Ministry of Energy reminded that MVM Zrt. has extensive trade relations with Gazprom and Rosatom, Russian companies under international sanctions, through which Hungary maintains a high dependence on natural gas and nuclear technology from Russia.
„Elements of ‘decisive influence, shadow control, influence by economic dependence and effective control’ were identified, both within MVM Grup and the company through which it is intended to buy the majority stake in E.ON Energie Romania”, the quoted statement stated.
MVM would be able to resell Romanian assets
At the same time, the Ministry of Energy claims that the analysis of the documentation submitted by MVM indicates that the contractual structure and the clauses relating to the transaction generate the possibility of the subsequent assignment of the shares purchased from E.ON Energie Romania to entities outside the European Union or to other entities that are not present as initial parts of the transaction. Subsequently, the Ministry of Energy warns that this contractual vulnerability could facilitate the indirect transfer of control to economic or political actors that do not respect the rigors and compliance standards imposed by European legislation in the field of energy and transactions transparency.
On the other hand, the institution specifies that the lack of legal and contractual guarantees was identified in terms of protecting the data of E.ON Energie Romania and the personal data of over 3 million Romanian customers.
Unclear origin of funds
„Incomplete declarations and the unclear origin of the MVM funds for this acquisition were found, raising suspicions regarding compliance with European legislation on the prevention of money laundering and competition rules. The proposed value of the transaction should also be analyzed. There are data according to which MVM’s commercial relations with companies controlled by the Russian Federation are based on the provision of goods and services at rates that generate an indirect capitalization of the MVM group with funds from outside the European Union,” the cited document also states.
Moreover, the Ministry of Energy noted the conflict with the national energy strategies showing that the information in the MVM documentation to reduce the consumption of natural gas goes against the Energy Strategy of Romania and the Government Program 2024-2028, which prioritizes expanding the population’s access to gas networks and capitalizing on internal resources.
Furthermore, the authorities in Bucharest claim that similar transactions have been comparatively analyzed, such as the case of the acquisition of the Talgo train manufacturer in Spain, which were rejected due to MVM’s links with Russian entities and the political influence exercised by the Hungarian Government. This example reveals a documented practice of using strategic acquisitions to strengthen Russia’s geopolitical interests in various EU member states, the statement emphasizes.
„Romania has the 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 the single market. We will act firmly and unequivocally to defend Romania’s national security and the energy security of the European Union, which must be rid once and for all of its dependence on Russian gas. Energy blackmail must remain a sad memory of the past, and the future must be one of real energy independence, not that invoked by those who, in effect, throw us back into the arms of Moscow. This is true sovereignty: not depending on anyone. Others could potentially depend on us. Romania’s energy must remain only at the service of Romanians”, said Sebastian Burduja, Minister of Energy, quoted in the statement.
The notification made by the Ministry of Energy to the Commission for the Examination of Foreign Direct Investments (CEFDI) represents a procedural step according to national and European legislation, which does not affect the principle of economic freedom, claims the Ministry of Energy, showing that it respects the right of private legal entities 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.
MVM acquires E.ON Energie Romania in December
We reiterate that in December of last year MVM Grup, the second largest company in Hungary, signed an agreement regarding the acquisition of the households and customers services division of the company E.ON in Romania.
According to the agreement, MVM would acquire a 68% stake in E.ON Energie Romania and a 98% stake in E.ON Asist Complet, a press release from the Hungarian group stated.
The transaction is estimated to be completed in 2025, after all necessary approvals from the relevant authorities. The two companies decided not to make public the value of the transaction.
MVM Grup is Hungary’s leading energy supplier, a 100% state-owned company, ranked sixth in Central Europe. E.ON Energie Romania, one of the largest suppliers of natural gas and electricity in the country, has approximately 3.4 million customers. E.ON Assist Complet is a regional company specialized in energy services, providing infrastructure installation and maintenance solutions.
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