PRAGUE (Thomson Financial) - The European Commission has approved the
planned gas joint venture between Czech power group CEZ and Hungary's oil and
gas group MOL, Czech daily Hospodarske Noviny reported, citing an EC
spokeswoman.
At the end of last year, the groups agreed to create a 50-50 joint venture
to build gas fired plants in central and southern Europe.
The venture will build two 800 megawatt gas fired power plants in Slovakia
and Hungary -- an investment of 1.4 billion euros.
The two companies could also expand cooperation to include projects in
Croatia and Slovenia.
As part of the venture CEZ purchased a 7 percent stake in MOL at a cost of
560 million euros. However, MOL will have a three year option on the shares to
buy back at 20,000 forints a share.
jason.hovet@thomsonreuters.com +420 222 191 109
jrh/rfw
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