Hungary amends FDI regime by adjusting deadlines and extending the scope of preemption rights

The amendment extends the deadline provided to the Hungarian minister of domestic economy for the examination of transactions falling within the scope of the FDI Decree from 30 business days to 45 business days starting from the date of notification. This deadline may be further prolonged three times by 30 business days if the minister deems it necessary for the clarification of the transaction’s facts ahead of its decision on acknowledgement or prohibition of the transaction.

In addition, if the minister prohibits a notified transaction, Hungary can exercise the right of pre-emption over the transaction on the same terms as set out in the notification submitted to the minister. This right may be exercised within 90 days of receipt of the minister’s prohibiting decision and applies to any sector the affected Hungarian strategic company operates.

The above provisions provided for by the amendment apply to all notification procedures in progress before the minister, and to all notifications to be made after the effective date of the amendment.

For more information on changes to Hungary’s FDI regime and its impact on your business in Hungary, contact your CMS client partner or these CMS experts.