The Hungarian government introduced legislative proposals to establish regulatory oversight of foreign acquisitions targeting Hungarian companies deemed strategically important.

Key Proposal Elements

The measures would encompass monitoring of sectors including finance, telecommunications, critical infrastructure, and emerging technologies—particularly those potentially attracting non-European investors. The regulatory threshold would apply to acquisitions exceeding 25% ownership of Hungarian firms, or 10% for publicly listed companies, as well as de facto control scenarios.

Procedural Framework

Prior ministerial consent would be required for transactions meeting these criteria. This process mirrors existing competition law pre-merger approval mechanisms. Administrative appeals would be available against ministerial decisions, though judicial review would be restricted to procedural irregularities rather than substantive determinations.

Context

These Hungarian initiatives followed the European Commission’s FDI screening regulations issued in September 2017. Prior to this proposal, Hungary lacked comparable national security and public policy screening mechanisms similar to those already established in the United States and Germany.

Implementation Timeline

The proposed changes were anticipated to take effect in October 2018.