The most important business and finance news from Hungary – 7th week
See below main business and financial news from the previous week:
NEW HUNGARIAN OPPORTUNITIES IN SUDAN
The international sanctions against Sudan were in effect for exactly two decades – but now that they have been dissolved, the country became one of the most promising destinations in Africa. And this offers many new opportunities to Hungarian companies as well. Read more HERE.
S+P AFFIRMS HUNGARY ‘BBB-/A-3’ RATING; OUTLOOK ‘POSITIVE’
Standard and Poor’s Global Ratings on Friday affirmed Hungary’s ‘BBB-/A-3’ long- and short-term foreign and local currency sovereign credit ratings. The outlook on the ratings remained ‘positive’. “Hungary’s strong external profile and track record of fiscal restraint support the sovereign ratings,” S+P said.
COMPANY OF FORMER GE HEAD IN HUNGARY TO BUY LIGHTING BUSINESS
The company of the former head of the Hungarian unit of General Electric (GE), Joerg Bauer, agreed to buy GE’s lighting business in Europe, the Middle East, Africa and Turkey, as well as its global automotive lighting business, GE said. The sale includes GE’s five plants in Hungary, regional sales offices and other properties.
RICHTER Q4 PROFIT FALLS 70 PC; FINANCIAL LOSS, TAX PAYMENTS WEIGH
Hungarian drugmaker Gedeon Richter’s fourth-quarter net income fell by an annual 70 percent to 6.6 billion forints (EUR 21m), dragged lower by a financial loss and tax payments, an earnings report showed. Richter booked a 1.0 billion forints net financial loss in Q4, compared with a net financial gain of 9 billion in the base period.
CG POWER AND INDUSTRIAL SOLUTIONS TO PART WITH HUNGARIAN BUSINESS
India’s CG Power and Industrial Solutions agreed to sell its Hungarian business to Ganz Villamossági and Alester Holdings at an enterprise value of 38 million euros. The transaction, subject to regulatory approval, is expected to be closed by the end of March.
OPUS GLOBAL TO CONSOLIDATE MÉSZÁROS HOLDINGS
Listed holding company Opus Global announced plans to consolidate a number of the assets of its owner, the investor and Fidesz mayor Lőrinc Mészáros. Acquiring the stakes with the issue of new shares could lift Opus’s net assets by as much as 80 billion forints, the company said.
MOL BOARD CREATES NEW SEAT FOR CONSUMER SERVICES EXEC
Hungarian oil and gas company MOL said its board added a new member to oversee consumer services. MOL said the position of Executive Vice President for Consumer Services was created to better support the realisation of strategic goals. Transforming its traditional retail business into a consumer services business is a key element of MOL’s 2030 strategy.
ALDI BUYS HUNGARIAN DAIRY BRAND
The local unit of German-owned discount supermarket Aldi acquired the Kokárdás brand of Hungarian dairy Alföldi Tej. The brand translates as “cockade” in English. The Hungarian cockade, a ribbon rosette of the national colours, was adopted by revolutionaries in 1848 as a symbol of independence and is still worn by Hungarians on the March 15 national holiday.
HUNGARY WITHHOLDS SUPPORT FOR EU-MERCOSUR TRADE DEAL
Hungary became the first European Union member state to withhold its support for a free trade agreement Brussels is negotiating with the four founding Mercosur states: Argentina, Brazil Paraguay and Uruguay. Agriculture Minister Sándor Fazekas said Hungary will not support a free trade agreement that results in dumping and the import of often low-quality food products to European markets.
BOURSE MANAGEMENT FLOATS IDEAS FOR CATEGORY RESTRUCTURING
The management of the Budapest Stock Exchange made a number of proposals on a restructuring of the bourse’s system of categories in a document prepared for consultations. The management is proposing scrapping the IPO requirement for shares in the Prime and Standard categories, reducing the minimum capitalisation threshold for listing in the Prime category, making the assignment of sponsors mandatory for the Prime category, introducing quantitative criteria in the Standard category, harmonising free-float criteria with listing criteria and terminating the T category for “technical” listings.