E.ON is to acquire the entire gas trading and storage business of the Hungarian oil and gas company MOL. The two companies originally agreed in November 2004 that E.ON would take over 75% of the gas trading and storage business and 50% of the gas import company Panrusgaz.
The EU Commission approved this transaction in December 2005 subject to certain conditions. One of the conditions is that MOL must fully divest its gas storage and trading business. E.ON will therefore acquire the remaining 25% of the two companies. The acquisition of these additional stakes still has to be approved by the Hungarian energy authorities.
The total purchase price is now E450 million. In addition, E.ON will assume debt amounting to E600 million. Additionally E.ON an MOL agreed upon a compensatory payment mechanism to adjust the transaction price in function of the development of the regulatory framework until the end of 2009. The transaction is to be completed by the end of March 2006.