Hungary aims to recycle 90 percent of the glass, metal, and plastic bottles beverage products within three years.Continue reading
Indotek Group signed an agreement on Wednesday to acquire 47 percent of Auchan Magyarország Kft., who manages the retail operations of the Auchan supermarket chain and owns several of its stores and petrol station network, and 100 percent of the legal entities owning the retail premises in the shopping areas of Auchan stores.
The transaction will make Indotek Group a financial investor in the Hungarian Auchan supermarket chain, majority-owned by the French Mulliez family. As part of the agreement, the retail operations of the chain will continue to be managed by the current management of Auchan after the transaction.
The strategic partnership between the European retail giant and the Indotek Group will allow Auchan to expand with new stores in Indotek’s existing retail properties. This will enable the chain to offer its products to a significantly wider range of customers in additional rural areas.
Also as of Wednesday, Indotek Group will become the sole owner of retail space on the floors of Auchan stores through the acquisition of Ceetrus Hungary Kft. and Nhood Services Hungary Kft.
Indotek Group is one of Hungary’s leading investment management groups. Its activities focus on real estate investments, including asset management, such as acquisition, development, operation, and sale of various industrial, commercial, service, and residential properties. In addition, the company is active in private equity investments and asset management of bank receivables secured by real estate.
With more than 530 employees, the Indotek Group owns over 350 properties. Its real estate portfolio includes a number of office buildings, shopping centers, hotels, warehouses, industrial sites, and retail parks in the capital and in rural areas. Their total area exceeds 2.5 million square meters, currently serving more than 4,000 tenants. Indotek Group is also present in the residential real estate market through its own residential development projects. Together with Hungary, the Indotek Group has investments in 12 countries, including Croatia, Poland, Italy, Romania, Spain, and other countries, as well as commercial, retail, industrial, and hotel properties.
The parties involved in the agreement did not disclose the value of the transaction and said that their cooperation is exclusive and does not involve any third party. The acquisition will become final after competition authority approval.
The cooperation between Auchan, owned by the French Mulliez family, and the Indotek Group, headed by Dániel Jellinek, will open up new market opportunities for both parties, the statement said. “We are involved in hundreds of successful transactions every year at home and abroad, but the agreement signed with Auchan’s owners has outstanding synergies even in this field. As a major player in the real estate market, we can help the chain of department stores to expand in Hungary very effectively,” said Jellinek, CEO of Indotek Group.
Jellinek added that the parallel presence of national and global players in retail is a common trend in Central Europe. With the cooperation of Auchan and Indotek, this trend will also be highlighted in Hungary.
The acceleration of the domestic expansion of the Auchan chain is not only good news for rural shoppers, but in the longer term it may also offer new opportunities for domestic food and agribusiness operators to strengthen their market positions as local or regional suppliers,
he emphasized.
Dominique Ducoux, President of Auchan Retail Hungary, said: “For our company, Indotek’s ownership provides a strong guarantee of our continued development in Hungary. Thanks to Indotek’s expertise and capabilities in retail and real estate, we will further strengthen our commercial position and open new stores across the country. The main beneficiaries of this partnership will be our customers, the Hungarian people, who will have access to our quality product range at affordable prices.”
Via MTI, Featured image: Wikipedia/