Hungary to Sell Majority Defence Stake to 4iG Ahead of 2026 Election
The Government of Hungary plans to sell a major part of its defence industry stake to 4iG Group, the Ministry of Economy announced on Wednesday. This move includes shares in several key facilities, including Rheinmetall’s Hungarian subsidiary.
Defence Assets Consolidated and Offered for Sale
Under the proposed plan, state-owned N7 Holding—currently owning stakes in nine defence companies—will transfer its assets to a new subsidiary called N7 Defence Zrt. Following this, 4iG’s defence unit, 4iG SDT, will acquire a 75% plus one vote majority in the new firm. The Hungarian government will retain the remaining shares.
The transaction is estimated at up to 82.8 billion forints (around $238.4 million), covering strategic assets like the Rheinmetall factory, the Airbus Helicopters plant, and a firearms manufacturing facility.
Strategic Timing as Election Pressure Builds
Prime Minister Viktor Orban’s government is moving forward with this sale as the country prepares for elections next year. Orban, in power since 2010, is facing a growing challenge from centre-right opposition leader Peter Magyar. Several polls currently place Magyar’s Tisza party ahead of Orban’s ruling Fidesz party.
Criticising the deal, Magyar called the privatisation plan “tantamount to treason” and demanded its cancellation.
4iG’s Rapid Rise and Growing Influence
In recent years, 4iG has become a dominant force in Hungary’s ICT sector, growing rapidly through acquisitions and state contracts. CEO Gellert Jaszai, who joined Orban on a December 2024 visit to Mar-a-Lago, claims to have met US President Donald Trump and Elon Musk during the trip.
4iG’s stock rose by 6.4% by 0722 GMT on Thursday following news of the deal.
Hungary, a NATO member bordering Ukraine, has focused on military modernisation since 2017. The country has acquired tanks, helicopters, and air defence systems while encouraging foreign firms to build locally. In 2023, Germany’s Rheinmetall began producing its new Lynx infantry fighting vehicle in Hungary.
with inputs from Reuters