Croatia Fails to Clinch INA Deal with Hungarians

Croatian government has plans to buy out shares in Croatia’s INA company owned by the Hungarian energy company MOL - to regain control over the country’s only major energy concern - broke down at the end of last week.

The government in Zagreb wanted to add the 49.1 per cent of shares that MOL owns in INA to the Croatian state’s existing stake of 44.84 per cent.

But the third round of negotiations between the government and MOL since MOL decided to sell its stake in INA November 2013 concluded in Zagreb without a deal.

Croatian Economy Minister Ivan Vrdoljak reported that his government and MOL could not agree on any of the open questions. As a result, a new proposed agreement will have to be made and offered to MOL.

MOL officials stated after the meeting that they came to Zagreb “to negotiate in good faith” and make a deal with the Croatian government.

“Unfortunately, the minister could not give us a clear position on the proposal of INA’s Supervisory Board,” a MOL press release said, adding that MOL was willing to proceed with new negotiations.   

MOL’s takeover of INA’s share was controversial in Croatia from the start. MOL bought 25 per cent of the company’s shares in July 2003 for $505 million, while Croatian citizens bought shares for 50 per cent more in November 2006.

MOL bought the next package of 22.15 per cent of the shares in October 2008, making it the biggest single owner of shares in the company.

In January 2009, the shareholders’ agreement for INA was changed, with MOL gaining control over the management and assuming a strong position in the supervisory board.

Croatia’s Financial Services Supervisory Agency, HANFA, filed charges against MOL in May 2011, of market...