EU Orders Hungary to Cancel Its Veto of Sale of Aegon Unit to Vienna Insurance

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.

Photograph: The logo of Dutch insurer Aegon is seen at the firm’s headquarters in The Hague are seen on Oct. 27, 2008. Photo credit: Koen Suyk/AFP/Getty Images