The obligation to report the acquisition of foreign ownership prolongs investment transactions

By: Trademagazin editor Date: 2020. 06. 12. 11:04

A decree at the end of May makes the acquisition of foreign shareholdings in so-called strategic companies subject to a ministerial licensing obligation. The government’s goal is to ensure that Hungarian companies do not fall victim to hostile takeovers due to the financial problems caused by the pandemic – Dr. György László Secretary of State said at the online conference of the international law firm Baker McKenzie.

In response to the pandemic situation, several European Union countries have taken similar measures. The Hungarian regulation was modeled on Italian regulations. The new measure also affects the acquisition of ownership in a company and transactions in the company’s assets, including the purchase of real estate and collateral related to bank lending. The purpose of this Regulation is not to prevent any intention of merger, acquisition of property in the interests of both parties without prejudice to the interests of the national economy.