By Veronika Gulyas

BUDAPEST--MFB Zrt., the Hungarian state-owned development bank, has secured regulatory approval to buy a majority stake in a natural gas storage facility.

GVH, the country's competition authority, approved the deal even though the government already has a stake in a gas storage facility through MVM Zrt., the state-owned power company that acquired it from German peer E.ON AG (EONGY).

The MFB purchase doesn't violate Hungary's competition law because state companies are subject to special rules, the GVH said.

Hungarian oil and gas firm MOL Nyrt. (MOL.BU) signed the deal Oct. 7 with the Hungarian Hydrocarbon Stockpiling Association, or MSZKSZ, and MFB.

After the transaction MFB will hold 51% of the facility and MSZKSZ will buy MOL's remaining 21.56% stake and will have 49%. MSZKSZ was already a minority stakeholder in the storage facility.

The purchase price wasn't revealed.

The gas storage facility is located in the village of Algyo in southern Hungary. It was established in 2009 with a capacity of 1.9 billion cubic meters.

Write to Veronika Gulyas at veronika.gulyas@wsj.com

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