Hungary's 4iG has struck a landmark deal to acquire control of state-owned automotive and axle company Raba, one of the country's oldest industrial groups, in partnership with Czech defence conglomerate Czechoslovak Group (CSG) to expand its defence unit.

The Budapest-listed technology and defence group said on September 8 its defence and space subsidiary (4iG S&D) would purchase a 74% stake in the 129-year-old manufacturer for HUF25bn (€64mn), financed through a combination of equity and bank debt, and also announced a mandatory public purchase offer for the rest of Raba's shares at the regulatory price, or HUF1,789 per share.

The acquisition is the centrepiece of 4iG's strategy to integrate ground mobility into a defence portfolio that already spans aerospace and satellite technologies. Jászai Gellert, 4iG's chairman, said the deal would allow the group to create a "comprehensive defence capability" and open new export markets.

As part of the transaction, Czech-based Czechoslovak Group (CSG), one of Europe's fastest-growing privately owned defence conglomerates, will join as a strategic partner. CSG Defence, its armoured vehicle and mobility subsidiary, has signed a non-binding agreement that could see it take up to 49% in 4iG's project company, translating into an indirect 37% holding in Raba.

The tie-up gives 4iG exclusive rights in Hungary to distribute, assemble and service Tatra military trucks, a flagship CSG brand known for its heavy-duty, all-terrain vehicles. The parties plan to establish a new regional manufacturing and development hub in Gyor, Raba's home city, to make the Hungarian company Tatra's second-largest global supplier. Gyor is also the home of Volkswagen's largest engine factory, operated by Audi.

For Hungary, the deal is both a rescue and a relaunch. Raba has long been regarded as a strategic asset but has struggled with falling revenues, rising debt and the loss of state contracts in recent years, feeling the impact of lower demand in its key markets. The company launched a modernisation programme and carried out cost cuts that helped its earnings swing to a HUF2.1bn profit in H1 2025 from a HUF0.4bn loss a year earlier, despite lower revenues.

According to 4iG, the entry of CSG Defence as a minority shareholder could strengthen Raba's international expansion, leveraging the Czech group's expertise, capabilities and network to secure new orders whilst preserving national sovereignty and supply security.  The agreement also offers Raba an opportunity to reaffirm its role in Hungary's defence industry.

CSG has key manufacturing capacities located in the United States, the United Kingdom, Spain, Italy, Germany, the Czech Republic, Slovakia, Serbia, Greece and India. The company, with more than 14,000 people and ranked amongst the world's top 100 defence contractors, recorded €5.2bn in revenue last year.

Jan Marinov, chief executive of CSG Defence, said the partnership was "a key step in strengthening Central Europe's defence industry", adding that the combination of Raba's manufacturing base with CSG's technology and Tatra's global footprint would enable the group to supply modern, competitive solutions to Nato and EU allies.

The transaction also fits into the Hungarian government's broader push to revitalise the country's defence-industrial base, which has seen the state transfer ownership stakes in key assets to a strategic investor. By ceding control of Raba, the state is wagering that private investment and foreign expertise can achieve what public ownership has struggled to deliver.

If successful, the acquisition could restore Raba's position as a cornerstone of Hungary's defence industry and provide 4iG with a unique platform spanning land, air and space. For CSG, it cements its role as a regional consolidator, expanding its footprint beyond Czechia and Slovakia into one of the EU's newest defence growth markets.

4iG is set to continue its expansion in the defence industry, as Jaszai held talks in Turkey with Nurol Holding, owner of the Gidran armoured vehicle maker, and with Haluk Görgün, head of the Defence Industry Agency (SSB) before the latest announcement, according to a LinkedIn post by the Hungarian businessman.

Discussions centred on deepening technological and investment ties between Hungary's defence sector and Turkish industry. The visit highlights Budapest's push to integrate more closely with Ankara's fast-growing military technology base.

Hungary first announced in December 2020 that it would introduce more than 300 Gidran 4x4 armoured vehicles into service, with local production to start later. Hungary has so far taken delivery of 56 vehicles and a joint venture was set up in 2023 between Raba and Nurol Makina Hungary, the local arm of the Turkish defence group.

In a statement published on the Budapest Stock Exchange (BSE) website, Raba said that the board would commission a financial advisor to evaluate the offer and would publish the board's opinion and the expert evaluation within the statutory deadline.

In a separate statement, the National Economy Ministry said the sale of the state's 54.3% stake in Raba should support the automotive industry supplier's integration into international markets and strengthen its stability and 4iG Group can support its existing project portfolio and the development of 8x8 vehicle platforms, it added.

4iG shares surged 6% after the announcement, which came before the bell. Year-to-date, the share price of the ICT group has risen 142%.