Hungary blocked Greek Dairy bid. Credit: Flickr / Noo sun Dairy / CC BY SA 2-0
The government of Hungary has blocked the planned takeover of Alfoldi Tej Kft by the Greek Hellenic Dairies Group, despite the deal having already received shareholder approval.
The acquisition was to be executed through the group’s Romanian subsidiary, but the administration of Prime Minister Viktor Orbán stepped in, arguing that the move could undermine Hungary’s food supply. Officials claimed the deal risked diverting raw milk out of the country and could eventually leave Hungarian consumers dependent on more expensive dairy imports.
Hungary’s Ministry of National Economy framed the decision as a matter of national interest, describing the protection of the country’s food supply as “paramount” and warning that the transaction posed “significant risks” to the sector.
The largest Greek dairy producer’s expansion plans in Hungary
For Hellenic Dairies, one of Greece’s largest dairy producers, the rejection marks a setback in its strategy to expand across Central and Eastern Europe.
Company executives said their proposal had included a detailed plan to modernize Alfoldi Tej, which has been loss-making in recent years. The plan called for substantial investment in infrastructure and equipment, as well as new product lines designed to strengthen the Hungarian company’s market position.
According to sources close to the group, the goals included:
Sustaining and expanding Alfoldi Tej’s domestic operations
Diversifying its product portfolio
Supporting Hungary’s dairy farmers
Upgrading production facilities with significant capital spending
The Greek group argued that the deal would have secured, not weakened, Hungary’s dairy industry. Alfoldi Tej currently accounts for nearly 20 percent of the country’s raw milk purchases.
Questions over motives of Greek dairy producer expansion in Hungary
Market analysts have raised doubts about the government’s reasoning, suggesting that the food-security argument may have masked other motives.
Industry insiders did not rule out the possibility of pressure from domestic competitors who stood to lose if the Greek group expanded its presence in Hungary.
Profile of Alfoldi Tej
Alfoldi Tej Kft, one of Hungary’s leading dairy companies, employs more than 700 staff and processes close to 270 million liters of milk annually. According to local reports, the company generated sales of about €190 million ($203 million) last year but has posted losses since 2021.
The firm operates two plants—one in Székesfehérvár, in central Hungary, and another in Debrecen, in the east. Its brands include Magyar Tej, Riska, the health-oriented Pure Milk, and Meses, a children’s line.
Ambitions of Greece’s Hellenic Dairies
The blocked transaction underscores both the reach and the limits of Hellenic Dairies’ expansion strategy. In recent years, the group has grown aggressively through acquisitions in Romania, Bulgaria, and Cyprus, while consolidating its presence in Greece with the purchase of Dodoni, another leading dairy brand.
The collapse of the Hungarian deal highlights the geopolitical sensitivities that increasingly surround food production and foreign investment in Central Europe. For Hellenic Dairies, it is a reminder that cross-border growth ambitions can be reshaped not just by market forces, but by political ones.