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Competition Office clears Közgép-Duna Aszfalt merger

Hungaryʼs Competition Office (GVH) has cleared the merger of construction company Közgép with industry peer Duna Aszfalt, a resolution posted on the authorityʼs website shows, cited by state news agency MTI.   

Közgép is owned by construction magnate László Szijj, a figure known to be close to government circles, while Duna Aszfalt is owned by Szijj and his business partner Károly Varga.

Közgép was previously owned by the businessman Lajos Simicska, a one-time treasurer of the governing party Fidesz and a former close ally of Prime Minister Viktor Orbán, with whom he had a spectacular public falling out in 2015. Simicska sold the company to his former business partner Zsolt Nyerges last year.

Late in 2018, Nyerges in turn announced the sale of Közgép to Szijj, in a move seen at the time as another step in the gradual takeover by Fidesz-connected businesses of assets formerly owned by Simicska.

Közgép had net revenues of HUF 1.1 bln last year, down from HUF 9.5 bln in 2017, and HUF 29.4 bln in 2016, public records show.

Duna Aszfaltʼs net revenues climbed to HUF 129.5 bln last year, from HUF 75.6 bln in 2017, and HUF 32.5 bln in 2016.