India’s LT Foods has terminated its planned acquisition of Global Green Europe following a decision by the Hungarian government that blocked the transaction. This development highlights the challenges companies in the food and beverage industry can face due to regulatory issues.
In a recent stock exchange announcement, the owner of renowned basmati rice brands, Royal and Daawat, disclosed that a decision made by Hungary’s Ministry of National Economy on January 28 led to the end of the proposed deal. The Ministry rejected the transaction, citing “identified national economic and sectoral risks,” as noted in the filing.
Consequently, the proposed transaction is withdrawn and will not progress further. LT Foods initially agreed to acquire 100% of Global Green Europe in October, with an upfront payment of €6 million (approximately $6.9 million) at closing and an additional €1.8 million contingent on performance over the next two years, along with the assumption of the target’s debt.
The agreement also encompassed Global Green International (UK) and Greenhouse Agrar, which support distribution operations. Global Green’s Hungarian division was established in 2006 through the acquisition of Intergarden and now serves over 30 markets across Europe, offering a diverse range of products, including canned sweet corn, jarred gherkins, silver skin onions, peas, and sour cherries. These products are manufactured at two plants spanning 45 acres in Hungary.
At that time, Vikas Magoon, managing director of LT Foods Europe, emphasized the strategic importance of adding Global Green Europe Kft., stating, “[The] addition of Global Green Europe Kft., Hungary, will enable LT Foods to establish a third manufacturing hub in Europe, strengthening its foothold in central and southern Europe.” Currently, LT Foods operates manufacturing facilities in the Netherlands and the UK.
In a separate disclosure, LT Foods reported its financial performance for the third quarter of the 2026 fiscal year. For the quarter ending December 31, income from operations increased to Rs 28.12 billion ($306 million), compared to Rs 22.88 billion during the same period last year. Additionally, net profit rose to Rs 1.57 billion from Rs 1.46 billion in the third quarter of the previous financial year.