Hungary

Hungary

Introduces State's pre-emption right on acquisition of strategic companies involved in solar

14 Dec 2023

On 14 December 2023, the Government of Hungary amended its FDI screening rules through Government Decree No. 566/2023, introducing government pre-emption rights for FDI deals involving strategic solar power plant companies. This right enables the Government to prioritize its acquisition over others. The process starts with the Minister of National Economy reviewing solar plant acquisition documents. If it falls under the FDI Decree, the Energy Ministry assesses the pre-emption right's validity. If applied, the FDI clearance ends, and the acquired company must transfer to Hungarian National Asset Management Ltd within six months. Additionally, the Decree narrows exemptions in the FDI regime, only exempting foreign intra-group transactions that don't change the Hungarian company's direct ownership and are strictly foreign-to-foreign. The Decree enters into force on 13 January 2024.

Nature of measure:
  • Entry restriction
Type:
  • Entry and establishment (Approval and admission - screening)
Industry:
  • Not industry specific
  • Services (Electricity, gas, steam and air conditioning supply)
Inward FDI:
No
Outward FDI:
No
Sources: