Hungarian billionaire buys foreign retail chain in Hungary
French retail chain Auchan is now under Hungarian ownership in the country. It is currently the ninth largest retail chain in Hungary. The Hungarian Indotek Group has now acquired a 47% stake in the chain. Group founder-owner Daniel Jellinek believes it is realistic for Auchan to become a top 3 player in five to six years under their ownership.
Auchan under Hungarian ownership
The short-term changes will not affect the operational management of Auchan. However, Indotek will be involved in strategic decisions. Plans include leveraging the synergies between Auchan and Indotek, as well as their real estate experience and retail network, to open new stores in the future, with a particular focus on rural cities, according to a statement to Index.
“Following the signing of the contract, the transaction was notified to the European Union’s Competition Authority in accordance with the legal requirements, as the consolidated turnover of both parties involved in the deal, i.e. Auchan and Indotek Group, justified this,” Indotek told Economx. Jellinek said that the group has entered the retail market in an increasing number of European countries in recent years, with its investments increasingly open to the agri-food sector.
Now 9th, Auchan plans to become 3rd in 5-6 years
A significant element of this opening was the acquisition of a 47% stake in Auchan Magyarország Ltd, a financial investor in the Hungarian department store operator. The Indotek Group also purchased the the company owning 100% of the retail premises in the shopping area of Auchan stores.
“Our plan is to become the 3rd largest player in the market in terms of market share within five to six years, as we have the capital and presence to do so after the transaction closes,”
Jellinek said. By comparison, Lidl is currently the leader in terms of sales, with SPAR and Tesco following. But for now, Auchan is overtaken by Coop, CBA, Aldi, Penny and even Reál. This means that from ninth position, they would race up to third by 2028-2029.
The competition aspects are still to be clarified. Following a notification to the European Union’s Competition Authority, a procedure is pending, which has not yet been notified to the Hungarian Competition Authority (GVH). The date for the conclusion of the procedure is still unknown.
In assessing the competition barriers, the GVH must take into account the advantages and disadvantages of the merger, the market structure, competition and the impact of the merger on consumers and the undertakings concerned, Portfolio writes. The further plans and strategies of Indotek and Auchan will become known after the competition law process has been completed.
Read also:
Indotek´s Mr. Jellinek of Mr. Orbán’s son-in-law Mr. Tiborcz association fame?
https://www.direkt36.hu/en/tiborcz-es-kore-az-mfb-hitelprogramjanak-egyik-nagy-nyertese/
Wasn’t he part of the consortium to buy Budapest Airport?
https://www.reuters.com/world/europe/hungarian-government-eyes-majority-stake-budapest-airport-newspaper-2021-05-28/
The fun bit is that Indotek is actually buying a 47 percent stake in Auchan Hungary and 100 percent ownership of retail premises in Auchan stores. And good connections to our dear Politicians. The Plan unfolds.
https://www.politico.eu/article/viktor-orban-squeeze-foreign-supermarket-out-hungary/
Let’s see what happens to Auchan´s OPEX (Operating Expense).
Accounting creativity NEVER ending in Hungary.
The re-writing or abolishing, the ceasing and crushing of Democracy in Hungary by Orban – is an ethical test, of our character in Hungary, that overall, our population, of 9.6 million, – live our lives as law abiding citizens.
Same can’t be said, if you are part of the subject of this article, whereby humongous or gargantuan favours are afforded you, by the Orban / Fidesz Political regime.
They are Ticked off with the green pen, by association of the name Orban/Fidesz.
It’s interesting how you’ve completely omitted the fact that this deal has strong links to Orban and his group of cronies. This site has really gone down hill in recent years.
Very simple solution: Just don’t buy there anymore. The choice is yours.
Now that they have a local in charge, will they still need to pay the “supervision” tax (https://www.politico.eu/article/viktor-orban-squeeze-foreign-supermarket-out-hungary/)?
Fidesz has been wanting to get control of the supermarkets and the construction industry and kicking out foreign companies. Just one more step for the Fidesz oligarchy.
Good to know, I will not go there anymore