OMV has ended its bid on MOL as a result of European Commission concerns.
The European Union's executive body had raised concerns that a merger between OMV and MOL would create competition problems and could lead to higher prices, indicating that OMV might have to sell a refinery to get any deal approved.
"The European Commission has indicated that it would not accept commitments that OMV had proposed," OMV said in a statement. "Since other commitments would be unacceptable to OMV, OMV has decided to withdraw the merger notification."
In June 2007, OMV doubled its stake in Mol to 20 percent and offered to buy the remainder as part of a plan to expand in Central Europe and Russia. The Hungarian government & MOL rejected the approach as hostile. OMV shares jumped as much as 7 percent in Vienna to €45.30 the highest one-day gain since January.
MOL at lunchtime today acknowledged OMV's decision to abandon its hostile takeover plans, saying the management was going to review possibilities concerning the future of OMV's 20% stake in MOL.
MOL sees the OMV announcement as a sign that OMV has finally arrived at the conclusion, repeatedly expressed by MOL for over a year, that OMV's merger plans have no sound rationale, raise serious antitrust concern, are essentially detrimental to shareholder value and make no strategic or business sense.
MOL said it would remain focused on protecting shareholder interest, and review future possibilities for the 20% stake held by OMV.
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PetrolWorld Archives
29th July 2008 - EU Mergers Under Review
17th July 2008 - Hungary: MOL Two Prong Offensive
13th June 2008 - European Commissioner Confirms OMV MOL Ruling by September
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