British telco Vodafone has agreed the sale of its Hungarian business in a deal worth €1.7 billion.

The deal will see local operator 4iG acquire 51 per cent of the business, with the Hungarian state holding the remaining 49 per cent as prime minister Viktor Orban continues to consolidate the country’s control over the telecoms sector. Orban’s nationalist government has also expanded its influence into energy, banking and the media.

For Vodafone, the sale represents the latest mark in a campaign of sales to pay down debt accrued during the tenure of CEO Nick Read, who stepped down after four years in December 2022.

Vodafone initially announced plans to dispose of its Hungarian business in August, with a deal coming after the company has sold assets in Europe and Africa.

​​Margherita Della Valle, chief finance officer and interim chief executive at Vodafone, said that the deal would increase and accelerate competition in Hungary.

4iG meanwhile has referred to the transaction as ‘one of the most significant transactions in the history of Hungarian telecommunications’, with Gellért Jászai, chairman of 4iG Nyrt, saying: "The acquisition of Vodafone Hungary opens a new chapter in the Hungarian telecommunications market. It is the first info-communications group in almost thirty years that can operate as a Hungarian majority-owned convergent operator.

“The strategic cooperation between the Hungarian state and 4iG in this transaction will not only transform the market but also improve competitiveness and accelerate the digital transformation of the economy.”

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