Date of Budapest Airport acquisition set

The Hungarian government submitted a bid for a majority stake in Budapest Airport back in September. After months of negotiations, the prospect of acquisition now appears on the verge of resolution, with the involved parties poised to finalise a contract soon.

Majority stake in the Budapest Airport

In September, we reported HERE that the Hungarian government tendered an offer to secure a majority stake in Budapest Airport, amid speculations of a  EUR 2-3 billion bid. The objective is to obtain a 51% stake, leaving the remaining 49% open to potential acquisition by another entity. Minister of Economic Development Márton Nagy, emphasised the airport’s strategic national importance and the intent to reclaim it from the majority stakeholder, AviAlliance, currently holding 55.44%.

As highlighted in our previous report, the Hungarian government and its partners must gather approximately EUR 4 billion to acquire the airport from its current German and Canadian owners. While the government has seemingly found a partner already, the transaction date remained uncertain until now. In addition, the Orbán cabinet initiated share sales, including divesting its holdings in two insurance companies, Alfa and Union, to finance the airport project.

A historic transaction

Recent updates from atv suggest that the negotiations for acquisition are proceeding smoothly and cooperatively among the involved parties. According to Márton Nagy, the final agreement is imminent. The ministry’s press department added that the Budapest Airport is a crucial strategic asset to the country, which the former Gyurcsány government recklessly squandered back in the day.

Furthermore, they underscored the historic economic significance of the upcoming transaction, labelling it the largest and most intricate since the regime change.

The date is set

Hungarian Prime Minister Viktor Orbán shares the view that negotiations are approaching conclusion. On 21 December, he asserted,

I consider this a closed case, even if we still refer to it as ongoing. It is a closed case, just the technical details need to be finalised.

Subsequently, Márton Nagy provided information on the the long-awaited finalisation date, disclosing that the contracts would be signed this spring.