The European Commission ruled on Monday 21 February that Hungary’s decision to oppose the acquisition of AEGON Group’s Hungarian subsidiaries by Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG) breached Article 21 of the EU Merger Regulation, which gives the Commission exclusive competence for mergers with a European dimension.
Prior to the Commission’s clearance, the Hungarian authorities opposed VIG’s acquisition of AEGON Group’s Hungarian subsidiaries on the basis of emergency legislation on foreign direct investments. At the end of October 2021, it opened an investigation into the decision of the Hungarian authorities.
Following its investigation, the Commission has doubts as to whether the veto genuinely aimed to protect Hungary's legitimate interests within the meaning of the Merger Regulation. It considers that the veto restricted VIG’s right to engage in a cross-border operation and that the Hungarian authorities failed to demonstrate that the measure was justified and proportionate.
The Commission concluded that the veto is incompatible with EU rules on freedom of establishment and violates Article 21 of the Merger Regulation. It orders Hungary to withdraw its veto by 18 March. If not, it may decide to open infringement proceedings before the EU Court of Justice. (Original version in French by Lionel Changeur)