Politics & Foreign Relations

   Economic News

   Business News

   Other News of Interest

   All stories

15th February, 2018

GE selling East European units

General Electric is selling its East European units to a company owned by Jorg Bauer, the former chairman of GE Magyarorszag, the US multinational announced on Wednesday.

The transaction includes all five of GE’s Hungarian factories, in Budapest, Nagykanizsa, Kisvarda, Zalaegerszeg and Hajduboszormeny, with a total of 4,000 employees.

GE is selling its whole lighting business in the Europe, Middle East, Africa and Turkey region.

In addition to the factories in Hungary, the transaction also includes representative offices outside Hungary and other properties, as well as trade and distribution agreements, parts manufacturing units and the global organisation and capacity of the automotive lighting business.

The sale will be completed by the middle of the year in several phases. The purchase price has not been revealed.

The former GE units will form a new Tungsram group that will also use the GE Lighting brand name for a temporary transition period.

GE purchased Tungsram in 1989, a company whose name was a synonym for lighting in many European markets for a century, the announcement underlined.

Bauer praised Tungsram as “the most innovative Hungarian company over the last hundred years”.

State export promotion bank Eximbank has expressed that it will continue its export financing with the new group. (napi.hu; hvg.hu; portfolio.hu; index.hu, origo.hu)
15th February, 2018

Konzum fund reassigns Hunguest holdings

Konzum is to receive a capital injection valued at Ft 16.2 billion in the form of a 71.2% stake in Hunguest Hotels, the holding company announced on the Budapest Stock Exchange website on Wednesday.

The Hunguest shares will be contributed by capital fund Konzum PE Magantokealap, which will receive newly issued Konzum shares in exchange.

After the transaction Konzum will own a 99.99% direct stake in Hunguest Hotels.

The value of the capital increase was established by consultancy PwC.

The value of the new Konzum shares was fixed at their Ft 3,141 market value reached on December 11, 2017.

After the transaction Hunguest hotels will be fully consolidated in the Konzum books.

The transaction is the first step in Konzum’s Ft 30 billion capital increase programme announced by the company in December. (napi.hu; portfolio.hu; magyaridok.hu; hvg.hu)
15th February, 2018

E.ON: offer was misinterpreted

E.ON regrets that its offer made to large gas consumers on the deregulated market was grossly misinterpreted, the energy company said on its website on Wednesday.

The offer of gas at 13% cheaper than the price set by the government on the regulated market was made to small businesses, the company said.

It added that similar campaigns were also carried out by competitors in recent years, E.ON underlined.

Fidesz vice-president Szilard Nemeth on Tuesday accused the German energy company of interfering in the election campaign with “a politically motivated utility bill price cut”. (napi.hu; hvg.hu; index.hu; 444.hu; nepszava.hu)
15th February, 2018

Knorr-Bremse workers form strike committee

Workers at Knorr-Bremse Hungaria have threatened to go on a two hour warning strike if no agreement is reached with the railway wagon manufacturer by Friday.

The Metal Workers Union announced that it had formed a strike committee in the Budapest factory on Wednesday.

The work stoppage would be the first strike in the history of the Knorr-Bremse factory.

The point of contention is not the average size of a planned wage hike, but the way it is to be distributed among employees.

The union is unhappy with the lack of standardisation in the wage hike as local bosses will be authorised to decide on the new wages.

The managers may base their decisions on personal preferences rather than on objective performance, the union underlined. (napi.hu)

Contact Free Trial Subscription