Hungary's MOL, Magyar Telekom Sign Strategic Cooperation Deal

BUDAPEST--Hungary's largest telecommunications firm Magyar Telekom Nyrt. (MTELEKOM.BU) Chief Executive Christopher Mattheisen and oil and gas firm MOL Nyrt. (MOL.BU) Chairman and CEO Zsolt Hernadi signed a strategic agreement between the two groups Tuesday.

MAIN FACTS:

- The agreement involves cooperation in marketing, retail, energy retail and information technology. It contains a letter of intent about cooperation in expanding various wholesale and retail services; areas of marketing, sales and telecommunication.

- "Two dominant companies of the Central-European region signed an agreement for future cooperation. ... The cooperation will offer mutual benefits for both parties. Moreover, it can also contribute to expanding Hungary's economy," Mr. Hernadi said in the statement issued by the companies.

- "The agreement signed today means that the two market-leading groups as the key driving forces of the Hungarian economy will combine resources for the benefit of their clients and the interest of the country. ... We are sure that [by] combining our skills, knowledge and competencies we will be more successful both in Hungary and in the region," Mr. Mattheisen said.

- MOL traded down 0.2% or HUF25 at HUF16,935 at 1440 GMT.

- Magyar Telekom traded flat at HUF332 at 1440 GMT.

Write to the Budapest bureau at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires