Indotek Takes Control of Auchan Hungary

Over the weekend, the Indotek Group completed the acquisition of Auchan Hungary Ltd. In addition to the 47% stake in the retailer, the real estate investor will also take over the operational management of the Auchan chain of stores, the investor told MTI on Wednesday.

Auchan Magyarország Kft. and its domestic interests involved in the acquisition employ around 6,000 people, and in 2023 they achieved an EBITDA of HUF 27 billion on sales of HUF 460 billion.

The acquisition had already been approved by the competition authority, Indotek said.

"With the experience gained from operating more than 50 domestic and international shopping centers and retail units, we can make Auchan's operations in Hungary more efficient and effective, and with our retail real estate portfolio we can accelerate the domestic expansion of the well-known and popular brand. This requires us to take a meaningful role in the management of the company as a minority owner", according to Dániel Jellinek, CEO and majority owner of Indotek Group.

He added that with the cooperation of the Indotek Group, Auchan can open new stores in Indotek's existing retail properties and even become an unavoidable player in the lower floor area segment. By expanding the store network, the chain's low-priced, high-quality products will be available to a significantly wider range of customers in new rural settlements, he added.

Auchan, which currently owns about 6.8% of the Hungarian retail sales, has 19 hypermarkets and 5 supermarkets with a total floor area of more than 250,000 square meters in Hungary. The chain also has 19 petrol stations.

A year ago, Indotek Group announced that it would acquire a 47% stake in Auchan Magyarország Kft. and, through the acquisition of Ceetrus Hungary Ltd. and Nhood Services Hungary Ltd., would become the sole owner of the retail premises on the floors of Auchan stores.

The parties did not disclose the value of the transaction and said that their cooperation is exclusive, Indotek stressed.