Index – Economy – European Commission: Hungary violates regulation by not allowing acquisition of Hungarian subsidiaries of Aegon group
The European Commission believes that Hungary has violated the EU Merger Regulation by prohibiting Vienna Insurance Group AG from acquiring the Hungarian subsidiaries of the Aegon group, wrote MTI. The proposed transaction is part of a larger business already approved by the European Commission: the Vienna-based insurance group may acquire Aegon’s Hungarian, Romanian and Turkish life and non-life, pension fund management, asset management and ancillary services businesses.
Prior to the approval of the EU committee, the Budapest government banned the acquisition of the Hungarian subsidiaries of the Aegon Group under legislation introduced due to the coronavirus epidemic, arguing that the acquisition would jeopardize Hungary’s legitimate interests. According to the committee, it has doubts as to whether the prohibition decision is really aimed at protecting Hungary’s legitimate interests.
According to the Brussels decision, the veto restricts the Vienna insurance group’s right to engage in cross-border transactions, and the Hungarian authorities have not demonstrated that the measure would be justified, appropriate and proportionate.
According to the panel, the ban is incompatible with EU rules on freedom of establishment and thus violates the EU Merger Regulation.
In its decision, the European Commission called on Hungary to lift its veto by 18 March. If Hungary fails to do so, the Brussels panel will initiate infringement proceedings before the Court of Justice of the European Union.
Minister of Finance Mihály Varga said: Hungary will acquire a 45 percent stake in Aegon Biztosító and Union Biztosító, and signed a sales contract with representatives of the Vienna Insurance Group on Monday, according to him, this will increase public assets and return strategic assets to state ownership.