The Auchan acquisition of the Indotek group has entered the competition authority phase

Dániel Jellinek’s company, Biery Investments Zrt. belonging to the Indotek group, acquired sole control over Auchan Hungary Kft., Ceetrus Hungary Kft., NHOOD Services Hungary Kft., as well as MH Auchan Benzinkutak Kft. and MH Depo Kft. Although it was previously said that Indotek would acquire a 47 percent minority stake in the food chain, based on current developments, this minority stake is coupled with sole management rights.

The history of the deal dates back to September 1, 2021, when ELO, the owner holding company of the Auchan group, and Indotek announced that they had started exclusive negotiations on the partnership to be established in Auchan in Hungary. During the negotiations, they came close to an agreement on several occasions, but due to changes in the economic environment, such as inflation and the retail extra profit tax introduced by the government, the conditions had to be renegotiated. Auchan’s financial results in 2022 also contributed to the delay of the process: the company suffered a HUF 1.8 billion loss that year, while in 2021 it still generated a HUF 8.1 billion profit. A re-evaluation of the business plan has become essential.

Despite the financial improvement in 2023 – when the company posted a HUF 586 million profit, mainly thanks to the success of the fuel business – management concerns remained. For example, the sales revenue of MH Auchan Benzinkutak Kft. rose from HUF 34.4 billion to HUF 78.2 billion in one year, providing a significant contribution to the company’s positive results. At the same time, according to sources, the management’s decisions were characterized by short-term thinking, which resulted in several reorganizations and fluctuations within the company. One such example is the case of Auchan Proxy Kft., which was established in August 2024 to manage smaller stores, but in September, barely a month later, its liquidation was initiated.

Dániel Jellinek also publicly indicated the problems surrounding company management when he spoke about Auchan’s situation at Business Days. According to sources, he clearly stated that the value of the department store chain shows a downward trend, and the agreement can only be realized if the selling party accepts the terms of Indotek. If the deal is successfully closed, Indotek sees its greatest value in the core business, i.e. in the leasing of business premises located next to grocery stores.

Jellinek’s goal is to use the company’s real estate management experience to put Auchan’s domestic presence on a new footing, accelerating its expansion. Although he admits that the food trade requires special expertise, Indotek’s hundreds of commercial properties can give it a significant advantage over competitors.