Hungary: VIG agree to share stakes in Aegon and Union with state-owned Corvinus to save the deal

27 December 2021 — Andrei Victor
Austrian insurer Vienna Insurance Group (VIG) and the Hungarian government have reached an agreement on the principles of a cooperation and the further course of action, which provides for a participation of 45% by the Hungarian state in the Hungarian AEGON companies and UNION VIG.

The structure of the cooperation, which entails the controlling stake of and the operational management by VIG, is subject to further negotiations. The Hungarian government has nominated Corvinus Nemzetkozi Befektetesi, a 100% state-owned Hungarian holding company, as negotiating partner.

"VIG welcomes the future cooperation with Hungary. The signing of a Memorandum of Understanding is scheduled for Thursday, 23 December 2021.

As a next step, VIG and Hungary will negotiate the participation and governance structure, will obtain the necessary board resolutions, and will apply for the approvals that are necessary for the implementation of the transaction", as the Austrian insurer announced in a statement.

Aegon has taken note of an announcement issued by VIG, as the Dutch insurer informed here.

On November 29, 2020, Aegon agreed to sell its insurance, pension, and asset management businesses in Hungary, Poland, Romania, and Turkey to VIG for EUR 830 million. Aegon will continue to work with VIG to close this transaction.

On 6 April 2021, VIG received a decree from the Hungarian Ministry of the Interior blocking the planned acquisition of the Aegon companies in Hungary by a foreign company. VIG, jointly with Aegon, took legal action against this decision and filed a complaint with the Budapest Metropolitan Court on 5 May 2021.

On 12 August 2021, the European Commission decided to grant competition clearance to the acquisition of the Aegon business in Central and Eastern Europe (Hungary, Poland and Romania) by Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG), the Austrian group announced.

On 20 September 2021, VIG has been informed that its complaint against the prohibitive FDI decision of the Hungarian Ministry of Interior, brought jointly with Aegon, in the context of the planned acquisition of Aegon's business in Hungary has been dismissed by the Budapest Metropolitan Court.

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