VIENNA, June 25: Austrian oil and gas firm OMV has nearly doubled its stake in Hungarian peer MOL to 18.6 per cent and said on Monday it wanted a “combination” with MOL to better compete with larger rivals.

OMV, which already held a 10 per cent stake in MOL before the new purchase, said the two groups complemented each other regionally in central Europe and should take the opportunity of an oil and gas consolidation wave to combine their strengths.

“OMV seeks to strengthen its strategic participation in MOL through this operation,” OMV said in the statement, which confirmed a Reuters report from Sunday night. “The company is convinced by the long-term benefits of a closer cooperation.” “OMV regards the upcoming wave of consolidation as an opportunity for both companies to combine their strengths,” OMV said. OMV thus invites MOL to an open and constructive dialogue.

OMV in any case is prepared and ready to do so.” OMV said it bought an additional 8.6 per cent close to the traded market prices, implying a price of around 1 billion euros ($1.35 billion) for the stake. It added that the stake had been offered to other investors too, without elaborating.

Despite now holding 18.6 per cent, OMV's voting rights in MOL are limited to 10 per cent under MOL's articles of association.

—Reuters