Hungary May Announce State Buyout of Two Energy Firms This Year-Minister

By Veronika Gulyas

BUDAPEST--Hungary may announce the state buyout of two energy companies before the end of this year, the country's development minister Zsuzsa Nemeth said Wednesday.

The Hungarian government is in talks with several energy companies on a possible state buyout, Mr. Nemeth said on the sidelines of a press briefing. This is in line with the government's aim to increase state ownership in the sector and eventually create a non-profit household utility segment.

The government has already bought the Hungarian natural gas business of German energy giant E.On AG (EONGY) and has bought the natural gas storage facility from Hungarian oil and gas firm MOL Nyrt (MOL.BU).

The government is also in talks to buy back natural gas utility Fogaz Zrt., in which Germany's RWE Gas International B.V. (RWEOY) owns a 49.83% stake, Prime Minister Viktor Orban said earlier.

The government's aim besides cutting energy and utility costs for households is to decrease the country's energy dependency.

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