EU Approves Government Purchase of Budapest Airport

Hungary Today 2023.12.14.

The European Commission has approved the acquisition of Budapest Airport by Corvinus International Investment and VINCI SA, the Brussels-based body announced on Wednesday. The transaction mainly concerns the airport management sector, reports Magyar Nemzet.

The European Commission concluded that the proposed concentration does not raise competition concerns as the parties are not present in the same market or in vertically related markets. The proposed transaction has been examined by the EU Commission under the simplified merger control procedure.

Yesterday, the Ministry of Economic Development said that the government intends to ensure the future operation and related services of Budapest Liszt Ferenc International Airport following its purchase, through companies under majority state control.

The government’s aim is that the companies should operate on a market basis, be subject to the legal requirements for private market operators, and follow the usual international industry standards.

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This is also the aim of the amendments to the law adopted on Tuesday, which will guarantee that

companies that will be majority state-owned in the near future will operate efficiently and competitively on a market basis.

This will also contribute to the creation of a modern airport in our country, meeting 21st century standards and providing high quality services that will help to improve the performance of both the tourism and logistics sectors.

Fact

Since the beginning of September, it has been known that the government has made a takeover bid for the majority stake in Budapest Airport, allegedly for 51%. The specific buyer could be a state-controlled investment company. The minority stake would be held by a professional investor, supposedly the French company VINCI SA, one of the largest airport operators in the continent and the region.

In October, the Ministry of Economic Development made changes to the aviation law, preparing the ground for the takeover of the company. Then in November, the government sold its 15 percent stake in the Hungarian subsidiary of Erste Bank. At the time, Máté Lóga, State Secretary of the Ministry of Economic Development, confirmed the speculation that the government sold its stake in order to buy the airport.

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Via Magyar Nemzet; Featured Image via Facebook/Budapest Airport