MVM To Buy E.ON's Hungarian Arm

Hungarian state-owned energy group MVM Zrt is to buy Hungarian natural gas units from Germany's E.ON AG. The transaction price is €870 million ($1.11 billion).

The transaction includes a natural gas storage and E.ON's local natural gas trade company, and is set to close in the second half of 2013, following approval by authorities, MVM said in a statement. The final purchase price will depend on the amount of gas reserves when the deal goes through, it added.

The purchase price includes debt, E.ON said.

The sale includes E.ON Földgáz Storage Zrt.’s and E.ON Földgáz Trade Zrt.’s share capital valued around €350 million, as well as the assumption of all liabilities

Through its long-term gas supply contracts, Hungary's supply agreement with Russia is vital, given the small European Union member's dependence on Russian gas for heating.

See also: Hungary: Security of Gas Supply