Published: November 29 2023
Hungarian business group Indotek has recently acquired a 47% stake in French retail chain Auchan, making it under Hungarian ownership in the country. This acquisition aims to drive growth for Auchan in Hungary and position it as a top 3 player in the market within the next five to six years.
Auchan under New Ownership
While the operational management of Auchan will not be immediately affected by the change in ownership, the Indotek Group will be involved in strategic decision-making. They plan to leverage the synergies between Auchan and Indotek, as well as their real estate experience and retail network, to open new stores in the future. There will be a particular focus on expanding into rural cities.
Growth Plans for Auchan
Indotek's founder-owner, Daniel Jellinek, has expressed confidence in Auchan's potential for growth under their ownership. By utilizing the resources and presence that the Indotek Group brings, Auchan aims to become the third largest player in the Hungarian retail market within the next five to six years. Currently, Lidl holds the top position in terms of sales, followed by SPAR and Tesco.
Competition Process and Future Plans
The acquisition of Auchan by Indotek is subject to the competition approval process. Notifications have been made to the European Union's Competition Authority, and the Hungarian Competition Authority's involvement is still pending. The conclusion of this process will determine the further plans and strategies of Indotek and Auchan.
Conclusion
With the acquisition by Indotek, Auchan aims to strengthen its position in the Hungarian retail market and achieve significant growth in the coming years. This change in ownership brings new opportunities for Auchan to expand its presence and offer more options to customers, particularly in rural areas. The competition approval process will dictate the next steps for Auchan and Indotek, and their future plans will be revealed once this process is completed.
Questions & Answers
Who has acquired a stake in Auchan in Hungary? The Hungarian Indotek Group has acquired a 47% stake in Auchan in Hungary.
What is the goal of Indotek with this acquisition? The goal of Indotek is for Auchan to become a top 3 player in the Hungarian retail market within five to six years.
Will there be any immediate changes to the management of Auchan? No, there will not be any immediate changes to the operational management of Auchan.
What are the plans for Auchan under Hungarian ownership? The plans include leveraging the synergies between Auchan and Indotek, as well as their real estate experience and retail network, to open new stores in the future. There will be a particular focus on rural cities.
Who are the current top players in the Hungarian retail market? Currently, Lidl is the leader in terms of sales, followed by SPAR and Tesco. Auchan is currently ranked ninth.
When is the target timeframe for Auchan to become the third largest player in the market? The target timeframe for Auchan to become the third largest player in the market is within five to six years, by 2028-2029.
What is the status of the competition aspects of this acquisition? The competition aspects are still being clarified. The transaction has been notified to the European Union’s Competition Authority, and a procedure is pending. The date for the conclusion of the procedure is still unknown.
When will the further plans and strategies of Indotek and Auchan be known? The plans and strategies of Indotek and Auchan will become known after the competition law process has been completed.
