Hungarian investment manager Indotek Group has entered into a strategic partnership with Auchan Retail Hungary, acquiring a 47% stake in the company.
Additionally, Indotek has acquired Ceetrus Hungary and Nhood Services Hungary, which between them operate various retail premises in Auchan hypermarket outlets across the country.
The transaction will make Indotek a major investor in Auchan Hungary, while the chain’s day-to-day operations will continue to be managed by the existing Auchan management team.
The partnership between Indotek and Auchan is expected to lead to the expansion of the Auchan chain, with new stores set to be located in Indotek's existing retail properties. This will enable Auchan to reach a wider range of customers, particularly in rural areas.
In addition, the partnership is expected to create new opportunities for Hungarian food and agribusiness operators.
Increased Collaboration
Dániel Jellinek, CEO of Indotek Group, said that he sees this partnership as a sign of the growing trend of collaboration between national and international retailers in Central Europe.
The value of the transaction has not been disclosed. The acquisition is subject to approval by the Hungarian Competition Authority.
The close business relationship between Indotek and Auchan dates back many years, as many Auchan stores operate in Indotek shopping centers.
Reports that Indotek was planning to acquire a stake in Auchan’s Hungarian operations date back to 2021, but the war in Ukraine, coupled with a difficult economic situation, prolonged the talks.
Indotek has an extensive portfolio of over 350 properties across 11 European countries, while Auchan's network consists of 19 hypermarkets, five supermarkets, an online store and 18 petrol stations in Hungary.
Auchan Retail Hungary
Present in Hungary since 1998, Auchan currently has 5,905 employees, and reported a 2022 turnover of HUF 354 billion (€925.8 million), incurring a loss of HUF 1.8 billion (€4.7 million).
The retailer offers 40,000 to 70,000 SKUs in its large stores and accounts for around 6% of Hungarian retail sales.
