Talgo and Skoda Group may create a new European giant in rolling stock manufacturing

Talgo is considering a proposal for a potential merger with Skoda Group following their offer of a “business combination”, this is reported by the railway transport news portal Railway Supply.

The Spanish manufacturer has expressed interest in obtaining detailed information about the proposal.

According to their statement, they intend to evaluate how advantageous this offer is compared to the acquisition proposal from Hungarian Ganz-Mavag, valued at €619 million ($676 million).

The deal with Ganz-Mavag has received approval from the Spanish National Securities Market Commission, but the Spanish government is closely monitoring the process due to concerns about Ganz-Mavag’s ties to Russia, considering the company’s partial state ownership and Hungary’s close relations with Moscow.

Skoda Group, owned by the Czech company PPF, has been selected as a safer alternative for merging with Talgo, according to government statements.

If the deal with Skoda goes through, a new giant in rolling stock manufacturing could emerge in Europe, given the significant presence of both companies in the industry.

Talgo has already secured several major contracts, including high-speed train deliveries in Spain, while Skoda has strengthened its positions in Switzerland and Bulgaria, planning further expansion beyond the continent.

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