After the French Auchan announced that a Hungarian businessman, Dániel Jellinek, will buy the minority share of its Hungarian network, rumours about major buyouts started spreading.
G7 did some research and found out that three chains in total are stirring up interest, namely Auchan, Tesco and Penny Market. According to the portal, Penny Market has an estimated value of HUF 65-85 billion (EUR 182,653,185 – 238,854,165), Tesco is worth 270-350 billion (EUR 758,713,230 – 983,517,150), while Auchan supposedly has a value of 100-130 billion (EUR 281,004,900 – 365,306,370 ), but other theories about its market value conclude that the real value might be a bit lower, at a sum of 70 – 100 billion (EUR 196,703,430 – 281,004,900 ).
However, there is an issue with the rumours and the alleged plans to buy shared in these companies: Tesco and Penny do not plan to sell their shares.
Furthermore, based on their influence on the Hungarian market, buying one of them would not make a major difference. If the plan is to have more influential Hungarian chains, buying Tesco on its own would be enough, but Penny and Auchan have to be bought in order to make a change at the Hungarian market together.
G7 also mentioned that Prime Minister Viktor Orbán expressed in 2016 what the government’s plans were. He said that there are four areas where domestic capital needs to grow above international. These are media, banks, energy and retail network. Last December, government commissioner János Lázár said outright that foreign retail chains should be pushed out of the country with an “openly protectionist policy”.
Three sectors were acquired, but the retail network seems more difficult. In 2020 food retail had traffic of HUF 4,600 billion (EUR 12,926,225,400 ), but ideally, people should have spent 2,300 billion (EUR 6,463,112,700) at stores owned by Hungarians.
The business ventures of Dániel Jellinek and the Hungarian government might be familiar from our former article, in which we wrote about the businessman close to NER, who tried to buy Budapest Airport with no success. Then the government offered to buy the airport and even tried to use tactics to force the airport into selling shares. As Daily News Hungary wrote, the airport owners “no longer rule out the possibility of selling BA, but seek a higher price”.
The Hungarian economy has been an interesting topic lately. Many innovations are taking place in the country, and Hungary took 34th place on Global Innovation Index.
Source: G7, Daily News Hungary