Indotek Group, a holding of Hungarian businessman Dániel Jellinek, could become a minority investor in the companies that own the Auchan stores in the country.
ELO, a holding of the Auchan Group, began exclusive talks with Indotek to "make use of synergies in order to further reinforce their long-term positions in the Hungarian market" and to enter strategic cooperation, Auchan Hungary and Indotek said in a joint statement on Wednesday.
Several Auchan stores are operated in malls owned by the Indotek Group, the press release notes. A minority investor partner that has outstanding property market know-how and is also present in the logistics market could bring further development opportunities for Auchan, the statement said. This may indicate that the point of the strategic agreement is to make Indotek a minority owner.
The deal requires the approval of Hungary's Competition Office.
