HUNGARY TRENDS AND DEVELOPMENTS Contributed by: Pál Szabó, Barnabás Simon, Eszter Katona, Ádám Simon, Mihály Harcos, Karim Laribi, Gábor Kutai and István Szalay-Csala, Bird & Bird
Deal Activity in 2025 Strong fluctuations in quarterly M&A activity continued throughout 2025, with Q1 marking the lowest first- quarter deal count in recent years, while Q2 and Q3 saw volumes slightly above average. The first half of 2025 remained below both the long-term benchmark (-9%) and the same period in 2024 (-23%). Domestic buyers dominated in the first quarter, with only a limited number of cross-border transactions recorded, although international activity recovered in the following quarters, representing 36% and 29% of total deals in Q2 and Q3, respectively. The Hungar - ian State remained among the most active acquirers, while the market continues to be driven primarily by independent market players, which accounted for approximately 73–76% of total activity over the past three years. Among major domestic players, MOL maintained a strong presence by acquiring Endrőd Gázipari, a gas producer with associated mining infrastructure, and expanding its waste management portfolio through its subsidiary, Metal Waste Solution, which acquired business lines from Metal Shredder. Lead Ventures, MOL’s venture capital and private equity arm, also acquired SERES Gépipari, a manufacturer of com - ponents for public works vehicles. 4iG, a diversified IT, telecommunications, and defence group, contin - ued its acquisition strategy with the purchase of Net - fone Telecom, a mobile virtual network operator, and acquired a 74% stake in RÁBA Automotive Holding, one of the largest and oldest vehicle and compo - nent manufacturers in Hungary with defence industry capabilities, in a transaction valued at approximately EUR65 million. Waberer’s International also remained active, as evidenced by its ongoing acquisition of a 62.5% stake in rail freight company GYSEV-Cargo, Hungary’s second-largest rail freight operator, and by the acquisition of a 51% stake in Pannon Busz-Rent, a bus transport and rail replacement service provider. The technology sector recorded stronger activity in 2025, with multiple transactions in both Q2 and Q3, reflecting a welcome rebound after a subdued 2024, when only a few deals were completed throughout the year. While current levels remain below the record vol - umes seen in 2021 and 2022, all tech deals completed
Besides these core interventions, the government introduced social and fiscal measures to bolster domestic demand and ease inflationary pressures. These include personal income tax exemptions for mothers with two or more children, expanded fam - ily tax benefits, and the continued payment of the 13th month pension. Additionally, the government plans to introduce a 14th month pension with the first instalment expected in February 2026. Selective wage increases in priority industries, support for small and medium-sized enterprises (SMEs), and extended housing initiatives further aim to stimulate investment and mitigate cost-of-living challenges. New projects by companies such as Sunwoda, W-Scope, EcoPro, SEMCORP, Gotion and BYD are expanding Hungary’s battery manufacturing capac - ity across materials, components and assembly, with several facilities representing each firm’s first major presence in Europe. Complementing these measures, Hungary expanded governmental bond programmes as a critical funding tool in the context of constrained EU financing. These bonds, offering attractive yields relative to regional peers, have attracted strong domestic investor inter - est, although maturities due in 2025 raise potential refinancing and fiscal sustainability challenges. Despite US policy emphasis on reshoring, US-based multinationals continue to expand in Hungary, par - ticularly in research, development, and technology- intensive segments. Recent investment announce - ments indicate strong interest in establishing or enlarging local R&D centres, engineering teams, and advanced production capabilities. These projects are typically supported by targeted Hungarian incentive frameworks and leverage the country’s skilled labour pool and established manufacturing ecosystem. The largest current commitments include major electron - ics, industrial technology, and software development investments, with several exceeding multi-million EUR scales. Overall, the trend suggests that Hungary remains a competitive hub for innovation-linked activi - ties within US firms’ European operational strategies, despite the tax-related challenges outlined above.
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