Prior to the adoption of Regulation 2001/2157 on the Statute for a European Company (SE) (the SE-Regulation) and the implementation of Directive 2005/56/EC on cross-border mergers of limited liability companies (the Directive) into Hungarian national law, no legal provisions existed regarding cross-border mergers. However, it should be added that there was not a high demand from the companies' side to be able to execute such transactions. Therefore, and because of the relatively new regime, there is currently only limited experience regarding cross-border mergers within the Hungarian legal community. However, the relevant rules closely resemble ordinary (i.e. national) mergers, which is a customary practice in Hungary. With the adoption of the SE-Regulation and the implementation of the Directive into Hungarian law, the legal framework of cross-border mergers is clear and these rules may expand the opportunities available to Hungarian companies.
