The Hungarian Energy Bureau said on Wednesday that it was likely to complete by end-April the review of a complex agreement between Germany's E.On Ruhrgas and MOL on the sale of MOL's gas units.
Ukrainian Naftogaz already signalled that it would make an offer on MOL's gas business if authorities put a crimp in the MOL-Ruhrgas deal.
The Hungarian fuels group announced in early November that it would sell parts of its midstream gas units to Ruhrgas, implicitly valuing the business at about EUR 2.2 billion, including debts.
MOL will sell to Ruhrgas 75% less one share in each of Storage and WMT (wholesale, marketing and trading) and also 50% of Panrusgas for a total of EUR 425 million.
The head of the energy watchdog said they would finish their investigation by the end of April, Hungarian business daily Világgazdaság quoted him as saying on Wednesday.
With regards to competition issues, the transaction - due to its international implications - is to be checked also by the European Commission, but the body has not yet began to examine the draft contract.
As for pending approvals by authorities we believe that a number of large-scale news will surface in the next two to three months. This is not the first time the parties make an international-scope agreement and their consultants must have scrutinized all aspects of approvals before suggested their clients to sign the letter of intention.
We believe Naftogaz was a bit overzealous saying that it would make an offer on MOL's gas assets if the deal with Ruhrgas fell through.
Source: Portfolio online financial journal
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26.01.2005