India’s LT Foods has scrapped its planned takeover of Global Green Europe after the Hungarian government blocked the transaction.

In a stock exchange disclosure, the owner of the Royal and Daawat basmati rice brands said a 28 January decision by Hungary’s Ministry of National Economy had resulted in the termination of the deal.

The Ministry rejected the proposal citing “identified national economic and sectoral risks”, according to the filing.

“Accordingly, the proposed transaction stands withdrawn and will not be taken forward,” the filing read.

LT Foods had agreed to acquire 100% of Global Green Europe in October.  

The structure included an upfront payment of €6m (then $6.9m) at closing for the equity, plus an additional €1.8m over two years as an earn-out, alongside assumption of the target’s debt.

The planned deal also covered Global Green International (UK) and Greenhouse Agrar, which act as support and distribution entities.

Global Green’s Hungarian operation was created in 2006 through the acquisition of Intergarden. The unit now supplies more than 30 markets across Europe.

Its range includes canned sweetcorn, jarred gherkins, silver skin onions, peas and sour cherries, produced at two plants spread over 45 acres in Hungary.

At the time, Vikas Magoon, managing director of LT Foods Europe, said: “[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.”

LT Foods already has manufacturing facilities in Europe, with sites in the Netherlands and the UK.

In a separate stock exchange disclosure, LT Foods indirectly reported its financial performance for the third quarter of the 2026 fiscal year.

For the three months ended 31 December, income from operations rose to Rs28.12bn ($306m) from Rs22.88bn in the same period a year earlier.

Net profit for the quarter increased to Rs1.57bn from Rs1.46bn in the third quarter of the previous financial year.