Published by Global Banking and Finance Review
Posted on December 18, 2025
By Jan Lopatka and Jason Hovet
PRAGUE, Dec 18 (Reuters) - The new Czech government is looking at several options for buying out utility CEZ, including leaving some assets listed, but has not set a deadline for what could be one of the country's biggest energy shake-ups, its industry minister said.
Prime Minister Andrej Babis, a billionaire whose populist ANO movement leads a three-party government that took office this week after winning an October election, has pushed for full control of CEZ to boost energy security.
Industry Minister Karel Havlicek, an ANO vice-chairman and first deputy prime minister, told Reuters on Wednesday that one option would be to take over 100% of CEZ's generation assets and leave distribution and trading assets on the stock exchange.
The state could also acquire all of CEZ - one of central Europe's largest companies with a market capitalisation of $33 billion - and later relist part of the distribution and trading assets, among other options being considered. Havlicek declined to give further details of "price-sensitive" information.
The process could take up to two years once approved, he said.
"This would de facto mean that the desired step towards energy security has been taken," he said in an interview. "We would have the entire generation under control, as they do in France for example."
'MASSIVE' TRANSACTION
Leaving part of CEZ's distribution or trading businesses listed would ease the cost of buying out minority shareholders, who own 30% of the company. The state holds a 70% stake.
Buyout costs would exceed 200 billion crowns ($9.6 billion) at the current share price.
Havlicek said any transaction must offer fair conditions to minority shareholders.
"But I do not want to presume when exactly we will get to it," he said, adding the government was also working on cutting energy prices for customers and building new capacity mechanisms.
He called a CEZ buyout a "massive" transaction, but said it would give the state more room to manoeuvre.
Critics say the plan is costly, would deprive the state of dividends and saddle CEZ with debt.
Havlicek said CEZ generates annual earnings before interest, tax, depreciation and amortisation of 130 billion to 140 billion crowns, so it can handle the buyout without jeopardising investments.
($1 = 20.7550 Czech crowns)
(Reporting by Jan Lopatka and Jason Hovet. Editing by Mark Potter)
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