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Tuesday, 02 December, 2008, 23:40 GMT | more >>

Brussels voices OMV-MOL worries


News wires

The European Commission has voiced concerns about a number of aspects of a proposed takeover of Hungarian producer MOL by OMV, the Austrian company said today.

The commission sent a "statement of objections" to OMV citing competitive concerns about retail stations and the wholesale business of refined products, but has not specified what measures should be taken, OMV said in a statement.

"OMV will now carefully analyse the statement of objections," OMV said. "On that basis, OMV will submit its observations to the commission on how the concerns outlined in the statement of objections can be resolved."

OMV said the commission was scheduled to give its final decision on the case by 18 September.

Partly state-owned OMV, which already holds 20.2% in MOL, has proposed a bid valuing its Hungarian target at $20 billion.

MOL has repeatedly rejected the bid, which it considers hostile.

The two companies have been in a standoff since the summer of 2007, when OMV first indicated its takeover plans.

OMV wants to join forces with MOL amid consolidation pressure from Russia and Western players, saying merging the two would improve their standing.

MOL said the deal would destroy value for its shareholders.


Tuesday, 24 June, 2008, 12:21 GMT  | last updated: Tuesday, 24 June, 2008, 13:38 GMT

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