Pursuant to the government decree 227/2020 issued on 25 May, 2020 new conditions of foreign investment in strategic sectors have been announced. In line with the decree, under certain circumstances, acquisition of ownership in Hungarian companies considered strategically important is subject to an acknowledgment of the relevant minister.
Sectors considered strategically important are the following:
- Chemical and pharmaceutical industry;
- Commerce (wholesales; retails sales);
- Critical industrial industries (including electronics, machinery, steel production, vehicles);
- Defence industry;
- Construction of dams;
- Energy ( electric energy, gas supply, air conditioning);
- Emergency services (home defense, public safety);
- Financial and insurance services;
- Agriculture and food production;
- Government facilities;
- Information technology;
- Nuclear technology;
- Water supply and sewage treatment;
- Waste management;
- Building material industry;
- Transportation and logistics;
- Medical equipment production;
Under the new regulation the in-scope acquisition shall be reported to the relevant minister who in turn acknowledges or bans the acquisition within 45 days from the receipt of the necessary documentation.
Impact on investors:. Acquisition of ownership in companies operating in sectors considered strategic requires an acknowledgment from the government. The regulation is being analysed by UniCredit and clients will be notified should there be any direct impact.