A stunning move to end years of conflict-of-interest battles, the incoming Czech prime minister declares he will never again own or benefit from his multibillion-euro conglomerate.
In a political shockwave reverberating across Prague and Brussels, Czech opposition leader and incoming prime minister Andrej Babiš announced he is permanently severing all ownership and economic ties with his corporate empire, Agrofert—one of Central Europe’s largest industrial groups.
The billionaire politician, long accused of operating under an unresolved conflict of interest, proclaimed in a dramatic video released on social media that he will never again own Agrofert, nor will the company return to him even after he leaves politics. Instead, its shares will be placed into a new, irrevocable trust structure managed entirely by independent administrators.
The decision marks one of the most consequential political concessions in modern Czech history—one driven by fierce public scrutiny, pressure from the EU, and a direct requirement set by President Petr Pavel as a condition for Babiš’s appointment as prime minister.
A Calculated Break: “I will never own Agrofert again.”
Babiš, founder of the ANO movement and a dominant figure in Czech politics for more than a decade, declared that Agrofert—an empire he spent half his life building—will now be forever out of his control.
“I decided to abandon Agrofert irrevocably. I will never own it again. I will have no economic ties. I will not be in contact with the company in any way,” Babiš announced.
Under the new arrangement:
- A fully independent trustee will manage the Agrofert shares.
- A separate independent protector will supervise the trustee.
- Both positions will be chosen by a neutral expert specializing in such trust structures.
- No family members, business associates, or Agrofert-linked individuals may serve in these roles.
Babiš emphasized that the trust’s legal design ensures he will receive no benefits, no dividends, no influence—either now or in the future. His children will inherit Agrofert only after his death, making the detachment permanent.
Pavel’s Condition: No Premiership Without a Solution
President Petr Pavel insisted that Babiš publicly resolve his conflict of interest before being appointed prime minister.
After Babiš’s announcement, Pavel stated the formal appointment could happen as early as next week, with the new coalition government—ANO, SPD, and Motorists—being sworn in shortly after.
Babiš admitted the decision was painful:
“I could have retired from politics after the election and lived comfortably. ANO could have chosen another prime minister. But I know you would see that as betrayal.”
The former prime minister has long rejected accusations of wrongdoing, describing the conflict of interest as “alleged,” but acknowledged that political reality demanded a definitive solution.
Inside the Agrofert Empire: A Giant of Czech Industry
Agrofert spans more than 200 companies in agriculture, food production, chemicals, media, and logistics, employing 29,000 people—18,000 of them in the Czech Republic.
Its portfolio includes:
- chemical giants Deza, Fatra, Lovochemie, Precheza
- food processing brands Kostelecké uzeniny, Penam, Krahulík
- broad agricultural and logistics operations
Last year, Agrofert reported:
- CZK 7.1 billion (approx. €290 million) in profit
- CZK 212 billion in revenue
Much of its profit surge came from selling media outlets (Mafra), radio stations under Londa, and Synthesia chemical company.
Beyond Agrofert, Babiš maintains investments through the Hartenberg Holding, where he holds 87.75% ownership via SynBiol. Hartenberg invests in reproductive clinics, real estate, fashion brands, food businesses, and e-commerce platforms including Ovečkárna.cz and Sportobchod.cz.
A Political Strategy Years in the Making
Czech political analysts say Babiš’s move represents a far more sweeping resolution than his 2017 attempt to place Agrofert into temporary trust funds.
Czech Television’s political correspondent Petr Vašek described the new plan as:
“A far more advanced, irreversible form of divestment.”
Vašek maintains that Babiš recognized both his age and his ambition—he wants one more full term as prime minister and understands that the conflict-of-interest controversy threatened his viability at home and in the European Union.
Sources close to the presidency suggest Babiš and Pavel communicated indirectly before the announcement, indicating the president had at least partial insight into the plan.
Political Tensions Easing—but Voters Still Divided
The relationship between Babiš and Pavel has been turbulent, shifting between cooperation and hostility. Analysts note that their supporters—often highly polarized—have mirrored this behavior, creating an increasingly toxic political climate.
Babiš’s drastic decision could lower the political temperature. Vašek predicts:
“This announcement will normalize relations between Babiš and Pavel and may calm tensions between their supporters as well.”
Even within ANO’s base, a portion of voters—12.5% according to SCIO polling—supported a full divestment or the government’s resignation, signaling internal pressure for reform.
The Broader Stakes: EU Pressure and Financial Scrutiny
The European Union has long scrutinized Babiš for potential conflicts linked to EU subsidies directed toward Agrofert. Several EU institutions previously ruled that while serving in government, Babiš might have influenced subsidy policies benefiting his businesses.
By abandoning control entirely, Babiš is attempting to eliminate the issue before it begins to complicate Czech–EU negotiations under his next administration.
His move may also reinforce Czech credibility amidst ongoing disputes over:
- EU energy strategy
- fiscal responsibility
- agricultural funding
- rule-of-law standards
A High-Stakes Gamble With Massive Consequences
For Babiš, this was a personal sacrifice wrapped in political necessity—a move he says he “never imagined making.”
By permanently cutting ties with the empire he built from scratch, he seeks to:
- secure his premiership
- appease domestic critics
- satisfy EU legal requirements
- neutralize his most persistent scandal
- stabilize relations with President Pavel
Whether the public accepts the divestment as genuine remains to be seen. But one thing is clear: Czech politics has entered a new, unpredictable chapter.