The Spanish government blocked a public takeover offer launched by the Hungarian consortium Ganz Mavag Europe for the Spanish train manufacturer Talgo, assessing that this transaction would “create risks for national security and public order”.
The Council of Ministers in Madrid, which met on Tuesday morning, decided “not to approve foreign direct investment in Talgo S.A. launched by Ganz Mavag Europe Private Limited, for reasons related to the protection of the strategic interests and national security of Spain”, it is specified in a press release published by the Spanish Ministry of Economy.
In March of this year, the consortium Ganz Mavag Europe Private Limited, which includes the railway group Magyar Vagon and the fund owned by the Hungarian state Corvinus Zrt., launched a public offer, worth 619 million euros, to take over all the shares at the Spanish railway manufacturer Talgo, the manufacturer of the famous AVE high-speed trains.
The regulatory authority of the Spanish stock market (CNMV) has suspended the trading of Talgo shares, as a result of the information appearing in the media regarding the veto expressed by the Madrid government to the offer of the Hungarian consortium.
Škoda is also interested in Talgo
Last month Talgo also received a merger offer from Czech rival Škoda.
Škoda made an offer of “business combination and industrial merger” without any economic offer, Talgo said in a statement.
Talgo said it had asked Skoda for detailed information to be able to evaluate whether it surpasses the 619 million euros ($674 million) in cash offered by Ganz-Mavag on March 7.
The Spanish manufacturer said at the time that Škoda Group’s offer cannot compete with that of Ganz-MaVag.
Spanish officials have repeatedly stated that Talgo is a strategic company, given its access to sensitive information about Spain’s rail network, and by extension, national security.
Talgo, founded in 1942, is present in Spain, Germany, Kazakhstan, Uzbekistan, Saudi Arabia, Egypt and the United States, among other countries. It is Renfe’s main supplier of high and very high speed trains and the train supplier for the high speed rail project linking Mecca and Medina in Saudi Arabia. It is also the manufacturer of choice for German operator Deutsche Bahn and Danish operator DSB for decarbonising mobility with long-distance trains.
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