Legal Market Overview
The rapidly-developing solar power and renewable energy sector in Hungary shows no signs of slowing down, with the market seeing a sizeable volume of M&A and project finance transactions. Real estate and construction activity in the industry is also on the rise, which is skewed towards the construction of photovoltaic power plants and renewable power projects, such as the development of a geothermal district heating system in Budapest; this was announced by Hungarian heating company FŐTÁV together with the Icelandic group Arctic Green Energy.
Furthermore, the Hungarian National Bank (MNB) introduced the Green Preferential Capital Requirement Program for loans financing renewable energy production, and its scope extended to solar power plants, sustainable agriculture, energy efficiency, electromobility and green real estates.
Green lending initiatives also extend to the real estate market with the launch of the Green Home Program in the summer of 2021 as part of the MNB’s Green Program to facilitate the development of green homes and establish a green home loan market.
Domestic and cross-border M&A remains a key driving force of the economy, with recent blockbuster deals including the €300m acquisition by Hungary’s MOL Group of a 92.25% stake in OMV Slovenija. In the financial space, a talking point is the ongoing integration of major banking entities, known for now as Magyar Bankholding (consisting of MKB, Budapest Bank and Takarékbank). The newly-incorporated Digitalisation Directive, which allows for the establishment of limited liability companies online within the EU, is seen as a major development in Hungarian corporate law.
Prominent full-service firms include Andrékó Kinstellar, Lakatos, Köves and Partners, Hegymegi-Barakonyi and Partner Baker & McKenzie Attorneys-at-Law, Dentons and DLA Piper Posztl, Nemescsói, Györfi-Tóth and Partners Law Firm in cooperation with DLA Piper UK LLP.