The Hungarian Competition Authority (GVH) has approved the sale of Auchan Hungary to entrepreneur Dániel Jellinek.
The antitrust nod marks the end of a three-year acquisition process, which saw Jellinek's Biery Investments outbid Hungarian-American-owned Indotek Group for a stake in Auchan Hungary.
A deal between the two parties seemed imminent several times, however, significant shifts in the economic and market landscape forced them back to the negotiating table, leading to multiple revisions of the terms.
The Hungarian government imposed a retail extra profit tax, implemented price controls, and mandated promotions.
These measures, coupled with declining sales volumes and soaring inflation, which peaked at 25.7% in January 2023, significantly impacted the retail sector.
Despite a subsequent decrease in consumer prices and a food inflation rate exceeding 40% in 2022, all Hungarian retail chains, except Aldi, reported losses.
Auchan Hungary
Auchan incurred a loss of HUF 1.8 billion (€4.4 million) in 2022, a stark contrast to the HUF 8.1 billion (€19.8 million) profit recorded in 2021, requiring a reassessment of the company's valuation.
While the company managed to turn a profit of HUF 586 million (€1.4 million) in 2023, it was largely driven by its fuel business.
Last November, Indotek Group announced that it aims to make Auchan the third-largest retailer within five to six years, just behind Lidl and SPAR, and surpassing Penny, Aldi, CBA, Coop, and Tesco.
Dániel Jellinek has so far been tight-lipped about his plans for Auchan. He told Index that the Auchan Hungary expansion will primarily benefit consumers through wider access to affordable, high-quality products.
He also highlighted a long-term goal of leveraging Auchan's growth to support Hungarian food and agro-industrial businesses, enabling them to become competitive regional suppliers.
The sale of the Hungarian subsidiary of French retailer Auchan fulfils a government objective of increasing domestic ownership in the retail sector.
With over 20 years of presence in the Hungarian retail market, Auchan’s network comprises 24 stores nationwide, including 19 large-scale hypermarkets, as well as 18 petrol stations.
