Hungarian companies and business magnates whose expansion was associated with ties to Viktor Orban are changing strategy after Péter Magyar's April election victory ended the former prime minister's 16-year rule. Firms accustomed to large public projects are preparing for a market in which political access carries less weight.
Interviews with about a dozen former officials, executives and analysts indicate that billionaires from Orban's inner circle are rethinking their operations. Analysts expect the transition to place some politically connected companies under severe pressure, with several potentially unable to survive the new environment.
Market Epito, one of Hungary's largest construction groups, illustrates the shift. Founder and chief executive Sandor Scheer said the company would adapt by pursuing a larger number of smaller assignments, with housing and infrastructure becoming more important after public contracts, including major football stadiums, generated about a quarter of its revenue.
The change represents the largest corporate shake-up in Hungary in decades. Shares of companies identified with the previous political order have fallen even as the broader Budapest market rallied on expectations that a more competitive system could attract additional foreign investment.
Construction and road-building groups that relied heavily on public infrastructure procurement face the greatest exposure because they will now compete with new entrants for state funds. Daniel Hegedus of the Institute for European Politics expects parts of those networks to disappear within one or two years, while Market Epito says its three-decade record, financial strength and diversified portfolio are independent of political cycles.
The previous system gave Orban allies preferential access to state spending, tenders and favourable regulation. A 2024 OECD survey found a high rate of single-bid procurement procedures, while the European Union required competition reforms before releasing suspended funds; a pre-election study by anti-corruption group CRCB also identified political favouritism in public contracting.
Magyar submitted broad anti-corruption legislation in June and promised reviews of construction, defence and media contracts. Parliament then approved a constitutional amendment on July 13 to remove President Tamas Sulyok, whom Magyar described as aligned with the former government, while Sulyok denied having a political agenda. Opus Global, Appeninn, 4iG and MBH Bank have all suffered sharp share-price declines during the transition.
Road builder Duna Aszfalt says it can compete without political protection, but the government has suspended a southern highway extension and asked the company to return funds received before the election. 4iG rejects claims of favouritism and MBH says it followed national and EU procurement law. More transparent tenders may open space for international competitors while forcing former insiders to prove they can operate without privileged access.
