Budapest, Hungary, 17 October, 2013 - Baker & McKenzie Budapest has advised state-owned Hungarian Electricity Works on its acquisition of German utility E.On's entire Hungarian gas business, including gas trade and gas storage businesses. Completion of this deal sees a significant part of the energy sector re-nationalized, following privatization in the late 1990s.
Hungarian Electricity Works paid HUF281.3 billion (US$1.27 billion) for the business. The client is a major player in the Hungarian electricity sector, active in the areas of electricity generation, transmission, system operation and electricity trade.
E.ON previously controlled more than 65% of Hungary's natural gas storage capacity and was the largest distributor of household natural gas in Hungary and held the only private gas storage required for the operation of the gas system in Hungary.
The team was led by Pál P. Takács, co-head of Budapest Corporate M&A practice group. Energy, IT and Tax practices were also involved, as well as the Competition practice because the transaction raised complex EU and domestic merger control and state aid issues.
"We were honored to assist Hungarian Electricity works in this high profile, important energy sector transaction which represents the country's highest value energy sector deal of the last decade. As the transaction was relevant to Hungarian energy stability policy, it involved the highest government and state administration departments," commented Mr Takacs.