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E.ON increases stake in Hungarian electricity suppliers

German utility EnBW Energie Baden-Württemberg AG has sold its stakes in Hungarian electricity supply companies Budapesti Elektromos Muvek Nyrt., or ELMU, and Észak-magyarországi Áramszolgáltató Nyrt., or EMASZ, to E.ON SE.

The disposal of its 27% interest in the companies on Oct. 2 marks EnBW's exit from the Hungarian market, it said Oct. 4.

E.ON had already assumed majority ownership of ELMU and EMASZ through its acquisition of a controlling stake in innogy SE, part of a complex asset swap with rival RWE AG that was completed in September.

In addition to the deal with EnBW, E.ON signed an agreement on Oct. 3 with electricity provider MVM Magyar Villamos Muvek Zrt. and investor OPUS GLOBAL Nyrt., under which it will also acquire MVM's shares in ELMU and EMASZ.

The transaction will be followed by "a series of other transactional steps that will create a balanced and optimized portfolio in Hungary that also enables the swift integration of innogy's assets," E.ON said.

This includes E.ON selling its E.ON Tiszántúli Áramhálózati Zrt. power distribution business to Opus, subject to regulatory approval. MVM is also set to purchase power distribution and public lighting businesses from E.ON, as well as a 25% stake in E.ON Hungária. The final elements of the agreement are expected to close in 2021.

Financial terms were not disclosed for any of the deals. EnBW CFO Thomas Kusterer said the company's Hungarian minority shareholdings "have done very well since our entry into the Hungarian market around 25 years ago. ... We are now making use of the opportunity to withdraw from the market on financially attractive terms."