Why Spain Blocked the Purchase of Talgo by a Hungarian Consortium: All the Details

The Spanish Government Blocks the Acquisition of Talgo by a Hungarian Consortium, this is reported by the railway transport news portal Railway Supply.

The Spanish authorities have blocked the acquisition of train manufacturer Talgo by the Hungarian consortium Ganz Mavag Europe.

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The proposal to purchase the company for €619 million was rejected by the Spanish Ministry of Economy and Finance.

In an official statement, the ministry noted that permission for direct foreign investments in Talgo would not be granted at this time.

The government’s decision is related to risks that, according to experts, could threaten national security and public order in the country.

As a result of the rejection, Talgo’s stock market shares dropped by 10%, leading to a temporary suspension of trading. After trading resumed, the shares continued to fall, reaching a decline of 8.3% by midday.

Talgo, one of the leading train manufacturers in Spain, has long been under close scrutiny by investors.

Company representatives stated that they are awaiting further steps from Ganz Mavag and are prepared for independent decisions if circumstances change.

Meanwhile, a representative of Ganz Mavag announced their intention to file a lawsuit both in Spain and at the European Union level to contest the decision of the Spanish authorities.

The story of the potential acquisition of Talgo by the Hungarian consortium began in the fall of 2023, when Ganz Mavag expressed interest in acquiring 100% of the company’s shares.

In March 2024, the proposal was officially submitted to the Spanish stock market regulator CNMV. However, due to the strategic importance of Talgo for Spain’s national economy, the deal required approval at the governmental level.

Transport Minister Oscar Puente emphasized that the government would take all necessary measures to prevent Talgo from falling under the control of the Hungarian consortium.

One of the main reasons for the rejection is the political aspect. The Ganz Mavag consortium is 45% owned by the Hungarian state company Corvinus.

This raises concerns among the Spanish authorities due to the policies of the current Hungarian government, which are considered unfriendly towards the European Union.

The Spanish government fears that a key company in the railway sector could fall under the control of a state with a different political orientation.

The issue of changing Talgo’s ownership remains relevant amid active interest from other European manufacturers.

For instance, in July 2024, Skoda proposed options for industrial integration and merger with Talgo. However, despite detailing the offer, it was also rejected by Talgo’s board of directors.

While Talgo’s fate remains uncertain, its strategic significance for Spain continues to be a subject of intense discussion.

The company remains a vital component of national infrastructure and economic security.

Photo: Talgo

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