Hungarian Government Blocks Foreign Acquisition

The Minister of National Economy has prohibited the acquisition of a Hungarian-owned dairy company by a foreign investor, the Ministry of National Economy (MNE) announced.

According to the statement, the decision was based on the fact that the transaction would have posed a risk to the security of food supply for Hungarian families. The strategically important dairy sector currently employs more than 15,000 people. The government's objective is to renew and develop the food industry, preserve and further strengthen sovereignty, and ensure full supply of the Hungarian population with high-quality and affordable food products, the Ministry wrote.

On June 5 of this year, the Ministry of National Economy received an official notification stating that a foreign-owned corporate group intended to acquire 100 percent of the business shares of Alföldi Tej Ltd., a Hungarian-owned company.