The Government has decided to reject the takeover bid for Talgo presented by the Hungarian group Ganz Mavag (Magyar Vagon) on the grounds of national security and strategic interests. This has been decided by the Foreign Investment Board of the Ministry of Economy, Trade and Enterprise, which has denied the operation presented by the consortium to take over the entire Spanish train manufacturer for €617 million.
“Talgo is a strategic company within a key sector for the economic security, territorial cohesion and industrial development of Spain”, the Government has underlined in a press release, in which it has also stressed that the authorization of the operation would put at risk the guarantee of security and public order, for which reason it has also declared the information contained in the dossier as “classified”.
In view of this scenario, the Spanish Securities and Exchange Commission (CNMV) decided to suspend the company’s listing on the stock exchange as a precautionary measure. Then, after restarting trading, at a price of €4.30, Talgo’s shares began to plummet by more than 8%.
The veto has led to announcements of legal measures by the Hungarian company and by international shareholders.
