VIG ‘continuing talks’ with Hungarian supervisor to close Aegon deal

Vienna Insurance Group (VIG) has said that it is “continuing talks” with the Hungarian Ministry of Finance, which surprisingly blocked its planned acquisition of Dutch insurer Aegon’s central and eastern European business. The proposed deal included the acquisition of Aegon’s insurance, pension and asset management businesses in Hungary, Poland, Romania and Turkey. Aegon had agreed the sale to VIG for €830m. However, VIG said it had received a decree in which the Hungarian Ministry of the Interior announced that the intended acquisition of the Aegon companies in Hungary by a foreign investor is denied. VIG said when the news broke: “As part of the approval process, VIG has been in constructive talks with the responsible Hungarian minister of finance since January 2021. The decree is in contradiction with the course of the talks to date. Vienna Insurance Group expects that this issue will be resolved positively in the near future.” A spokesman for VIG subsequently told Commercial Risk Europe: “We are continuing exploratory talks with the Hungarian Ministry of Finance. The Ministry of Finance has always been, and will remain, our contact regarding the acquisition. We are conducting the talks directly through our management. At the moment, we want to discuss possibilities to be able to conclude the planned purchase positively and to get the approvals for it… We cannot say how long the talks will last and if and when a result will be reached. Of course, we are trying to reach a result as soon as possible.” VIG CEO Elisabeth Stadler expressed surprise at the blocking move in Hungary earlier this month, as she said: “Our ties to Hungary have grown historically and have always been characterised by mutual appreciation. For a quarter of a century, we have been successfully investing in the Hungarian economy. Therefore, we were surprised by the announcement from the Hungarian authorities. By assuming and insuring risks of daily life and through long-term investments, we are making a valuable contribution to the national economy, thus contributing to social security and securing jobs.” VIG said that it had started the usual talks and approval procedures with the local authorities, and in Hungary, and constructive talks with the Minister of Finance were initiated swiftly after the deal was announced. “All the more surprisingly, on 6 April 2021 in the afternoon, VIG was informed by the Hungarian Ministry of Interior that it would be denied approval for the acquisition of the Hungarian Aegon companies by a foreign investor,” said VIG. The insurer noted that it has been present in Hungary since 1996. “In all our markets, we are known as a long-term and reliable partner. We know our markets very well due to our long-term strategy. This is especially true for Hungary; we see this country as our home market. We feel a special bond with our neighbour not only because of our common past. We also do not see ourselves as a foreign investor but, based on our local multi-brand strategy and our principle of local entrepreneurship and local management, as a supporter and co-developer of the Hungarian insurance market,” said Ms Stadler. Aegon said it will continue to work with VIG to close the transaction.

VIG ‘continuing talks’ with Hungarian supervisor to close Aegon deal

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