Orban's government is preparing to sell the state defense holding to a company close to it
The Hungarian government plans to transfer 75% of the state defense holding company N7 Holding to the private company 4iG Space and Defense Technologies, which has close ties to Prime Minister Viktor Orban. This is reported by Militarnyi with reference to the Hungarian Ministry of Economy.
Under the preliminary agreement, 4iG will gain control over military-related businesses, including the production of ammunition, armored vehicles and small arms. The deal is valued at 82.8 billion forints ($238.4 million). Key assets could include:
- Aeroplex Ltd – aircraft maintenance company
- Airbus Helicopters Hungary – production of helicopter components (Airbus 70%, N7 Holding 30%)
- Rheinmetall Hungary Munitions – ammunition production (Rheinmetall 51%, N7 Holding 49%)
- Rheinmetall Hungary – production of Lynx KF41 infantry fighting vehicles
- Hirtenberger – production of mortar systems and ammunition
- Dynamit Nobel Defence – production of RGW 110 anti-tank grenade launchers
- Colt CZ Hungary – small arms production, BREN 2 assault rifles (Colt CZ Group 51%, N7 Holding 49%)
Despite the sale of production facilities, all critical infrastructure – factories and real estate – will remain state-owned, and the new owners of 4iG SDT will lease them to continue operations.
Originally a mid-sized IT company, 4iG has expanded rapidly in recent years thanks to Orbán’s support, receiving significant state investment and expanding into the international defense market.
The privatization has drawn sharp criticism from the opposition, with its leader, Peter Magyar, calling the deal "treason" and calling on the government to stop it.
The situation is developing ahead of elections for Orban's government, which are due to be held next year. According to polls, the opposition Magyar party "Tisza" is ahead of the ruling "Fidesz".
Orbán's decision on privatization is expected to be a key issue in the upcoming elections.