Hungary set to buy out most of Budapest Airport

The Hungarian government still expects the Qatar Investment Authority to join the consortium later

Hungarian prime minister Viktor Orban has  championed the acquisition as part of a broader push to boost local ownership in strategic assets

Hungary is finalising the purchase of Budapest Airport, pushing ahead with a multi-billion euro  acquisition despite a fiscal crunch.

The government will initially buy 80% of the airport, with French conglomerate and airport operator Vinci taking the rest, economy minister Marton Nagy told reporters. 

He reiterated plans for the Qatar Investment Authority to join the consortium later. He declined to elaborate on the purchase price.

Prime minister Viktor Orban has championed the acquisition as part of a broader push to boost local ownership in strategic assets. 

Hungary plans to expand the airport by building a third terminal and to boost capacity for both passengers and cargo, Mr Nagy has said. 

The government has long coveted the airport but was forced to abandon an earlier takeover attempt amid a cash squeeze. 

The cabinet will be forced to delay some investments in order to rein in spending, Mr Nagy told reporters, though he said that would not affect the airport purchase, which has already been cleared by the EU. 

Hungary has built up a war chest for the deal, including the divestiture of a 15% stake in the local unit of Erste, the sale of a 35% stake in the Hungarian unit of Vienna Insurance, as well as issuing debt. 

• Bloomberg