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EU Orders Hungary to Cancel Veto for Aegon-VIG Deal

EU Orders Hungary to Cancel Veto for Aegon-VIG Deal

Hungary was ordered by the European Union to cancel its decision to block the sale of Dutch insurer’s Aegon NV’s local unit to Vienna Insurance Group AG.

The European Commission gave Hungary a March 18 deadline to withdraw the deal veto or it would take Hungary to the EU courts for violating the EU’s exclusive right to approve the deal.

“It’s unclear how the acquisition by VIG of AEGON’s Hungarian assets would pose a threat to a fundamental interest of society,” the EU said in an e-mailed statement on Monday. “The veto was incompatible with EU rules on the freedom of establishment.”

Vienna has previously agreed to share ownership of its Hungarian operations with a state investment in order to salvage the deal.

©2022 Bloomberg L.P.