Hungary to extend grip over key sectors with insurance stakes
22/12/2022 15:46
BUDAPEST, Dec 22 (Reuters) - Hungary said on Thursday it
plans to buy majority stakes in two local insurance companies
from Germany's Talanx TLXGn.DE as it aims to raise local
ownership in key economic sectors.
Prime Minister Viktor Orban has led a more than decade-long
campaign to raise Hungarian ownership in the banking, media and
energy industries above 50%, with businessmen close to his
ruling Fidesz party acquiring large chunks of these sectors.
Talanx and Corvinus Nemzetkozi Befektetesi Zrt have agreed a
deal whereby the Hungarian state-owned company will buy 66.9% of
the shares in Magyar Posta Eletbiztosito Zrt and Magyar Posta
Biztosito Zrt, the Ministry of Economic Development said.
The step is in line with the government's strategic goal of
raising Hungarian ownership in the insurance sector, development
minister Marton Nagy added in a statement, which said the deal
is expected to be finalised in the first half of 2023.
The remaining 33.1% of shares in both companies are already
owned by Magyar Posta Zrt., the Hungarian postal service, which
means that they will be completely Hungarian-owned.
Hungary should boost domestic ownership in more key sectors
including insurance, building and food retail, Nagy said in May,
signalling more pressure on foreign companies to scale back
their presence in the country.
Dutch insurer Aegon AEGN.AS completed in March the sale of
its Hungarian arm to Vienna Insurance Group VIGR.VI for 620
million euros ($657 million), as part of a broader divestment of
regional businesses announced in 2020.
Hungary's government initially blocked the sale, but later
approved it, taking 45% stakes in the local Aegon and VIG units.
($1 = 0.9440 euros)
(Reporting by Anita Komuves; Editing by Alexander Smith)
((KOMUVES.Anita@thomsonreuters.com;))