Government-close company acquires Hungary’s largest bookstore chain: governmental interference to come?

The Hungarian writers’ community expressed concerns about the recent acquisition of Libri book store by MCC’s (government-affiliated foundation) subsidiary, stating that it will lead to unforeseeable and disastrous consequences.

Among others, Dénes Krusovszky predicts that a significant portion of the book market will now be controlled by the state instead of the market. Gergely Péterfy believes that the NER (System of National Cooperation) has influenced Libri’s acquisition, writes Index.

The acquisition

Mathias Corvinus Collegium Foundation’s subsidiary, SQ Invest Ltd. signed an agreement for the purchase of 67.48 percent of stakes in the Libri Group. This effectively made MCC the majority owner of the bookstore chain with a 98.41 percent stake.

Despite the ownership change, the management structure of the group will remain unchanged. The former majority shareholder will continue to support the Libri Group’s development as a board member, as confirmed by MCC.

Scepticism and cynicism

Dénes Krusovszky commented the purchase on Facebook, highlighting the unforeseeable consequences of the acquisition. He emphasised that a large portion of the book market will now be controlled by the state instead of market forces, which he perceives as an unfavourable development. Krusovszky also raises concerns about MCC’s funding. The foundation’s budget includes MOL (a company which still hasn’t cut ties with Russia) shares they received from the government. This links indirectly every purchase made at Libri to the Russian state and consequently to Putin.

Writer Péterfy Gergely suggested that authors and editors should join independent bookstores like Felhő Café Books (Felső Café Könyvek) and the Hungarian Republic of Umbria (Umbriai Magyar Köztársaság). He expected NER’s involvement in Libri’s acquisition and predicts long-lasting negative effects, possibly leading to catastrophic outcomes.

Comments below the post reflect a mix of outrage and support for the acquisition. Some readers even expressed their intent to boycott Libri by cancelling their loyalty cards.

The Hungarian Writers’ Association’s released a statement welcoming the market changes that may result from Libri’s ownership change. They believe that MCC becoming the majority owner of Libri Group can contribute to a more balanced market. The Writers’ Union hopes that Libri will prioritise promoting quality offerings from independent literary publishers and expresses openness to dialogue and professional cooperation.

Source: Index