Hungary: A Corporate/M&A Overview

Political Landscape

On 12 April 2026, Hungary elected a new parliament dominated by Péter Magyar’s TISZA Party, bringing to an end 16 years of rule by Viktor Orbán’s Fidesz-KDNP coalition. TISZA secured a landslide victory, achieving a two-thirds parliamentary supermajority.

TISZA is avowedly pro-EU and pro-NATO, emphasising that Hungary’s position is as a committed member of these alliances. One of TISZA’s priorities will be to re-establish co-operative relations with the EU, to demonstrate Hungary’s commitment to EU norms in relation to the rule of law and anti-corruption and to ensure the release of EU funds to Hungary that have been withheld under the EU conditionality regulation. The total at stake exceeds EUR35 billion, equivalent to approximately 16% of GDP.

Economic Environment and Policy

In 2025, the Hungarian economy delivered a persistently subdued performance for the third consecutive year, with GDP growing by just 0.4% in volume terms on raw data. For 2026, GDP growth is expected to come in lower than previously estimated: at 1–1.5% rather than 2%, partly due to the headwinds from the Iran conflict affecting Hungary’s export-dependent economy. However, a marked turnaround in investment activity is expected from 2027 onwards, with GDP growth potentially reaching 3–3.5%.

The new government has pledged to place the country on an accelerated path to euro adoption, targeting compliance with the Maastricht criteria by 2030. After a further two years within the European Exchange Rate Mechanism, Hungary could therefore introduce the euro around 2033–2034 at the earliest.

Under the new government, Hungary will continue to be a highly integrated part of European and international supply chains. Hungary is likely to eschew support for large-scale, subsidy-intensive assembly projects, particularly those that are environmentally damaging or reliant on the import of labour from outside the country. Instead, the new government envisages rebuilding Hungary’s image as a credible, rules-based and safe investment location anchored in the EU and Western European supply chains. Government support for investment would be targeted at innovation-led investments (in areas such as R&D and engineering) that promote higher-value work and greater opportunities for “trickle down” to domestic SME suppliers.

Many businesses associated with the previous government benefited from generous contracts and support from the Hungarian state. Some of these businesses will find it difficult to survive in their current form without continuing government support. It is likely that there will be significant restructuring of these businesses and opportunities to acquire their assets by investors with more experience in operating in a market economy. Areas where such opportunities may occur include telecommunications, banking, construction, infrastructure and hospitality.

Businesses focused on providing goods and services to the Hungarian population – such as those in the retail, utilities, banking and telecoms sectors – have been subject to targeted high taxation and interference by regulatory authorities. Many investors were forced out of these sectors or cut deals with local Hungarian oligarchs to obtain a degree of “protection”. Others decided against further investment in Hungary due to the risk of such interference. The TISZA government has promised to end such prejudicial treatment: it may take some time for investors to become convinced of both its commitment and its ability to deliver on this promise.

The new government has committed to ending Hungary’s dependence on Russian energy completely by 2035. This will require significant investment in providing access to alternative sources of energy. Other priority areas include energy storage and transmission networks.

The new government has committed to significant investment in education, healthcare and road and rail infrastructure. Such investment is likely to require significant amounts of financing and may lead to significant infrastructure investment opportunities in Hungary.

Markets and rating agencies have reacted positively to the above approach.

M&A Environment

The Hungarian M&A market has been dynamic in recent years, with interest from both domestic and foreign acquirers. According to local market reports, the aggregate value of announced M&A transactions reached a record level in 2024, despite relative stability in deal count (reflecting a number of high-value transactions). The aggregate value of transactions in 2025 dropped significantly, but still with an estimated total value in the multi-billion dollar range.

In terms of volume, deal count has slightly increased in recent periods, with a mix of mid-market and larger strategic transactions contributing to overall activity. Domestic investors, including corporate and private equity participants, have accounted for a significant share of transactions, while the activities of foreign investors from the United States, Western Europe and Asia were limited to key sectors, and they often remained on the sell side of the transactions.

Regarding deal size, the Hungarian market shows a broad spectrum, from mid-market takeovers and carve-outs to some high-value strategic deals that materially influence market statistics. Government-linked investments in infrastructure and defence have also contributed to a select number of large transactions. Sector trends have shown variation over time, but the manufacturing, industrial and technology sectors have been especially active. The information technology (IT) and services sectors also feature prominently, alongside energy and infrastructure-related deals.

The investor mix comprises strategic investors, domestic private companies, private equity and international investors.

Legal Environment

As discussed, the new government has vowed to reinstate the rule of law but also to adopt a new constitution and change various laws. This means that various changes can be expected in 2026, which may also affect the M&A market and commonly applied legal structures.

Generally, the regulatory environment is flexible, allowing various structures with which foreign investors are typically familiar. As an EU member state, Hungary is generally also compliant with EU law, but with some specific differences in certain areas. One area to note is asset transfers where Hungarian law does not recognise a transfer of a business as a going concern, which makes asset transfers more difficult to implement.

Regulatory Environment

Merger clearances will be required whenever thresholds are met. In general, Hungarian competition law is aligned with EU competition law and with certain specific rules regarding joint ventures.

Regulated industries may have additional approval requirements. As an example, financial businesses will require additional filings and approvals depending on the type of financial business.

Currently, a dual foreign direct investment (FDI) regime is also applicable. The previous government mainly used this tool to stop deals where the government wanted to intervene as a buyer but there were only a few prohibition decisions. The new government’s approach to FDI remains to be seen. This regime is a delaying factor that must be considered, sometimes even in the case of internal restructurings.