El Pais – The Spanish government has blocked the acquisition of Talgo by the Hungarian Ganz-Mávag Group, citing „national security risks.”
The government rejected the acquisition, citing the protection of strategic interests and the company’s economic security. Following the suspension of the deal, the train manufacturer’s shares dropped by up to 10%.
Pilar Alegría: „We need to wait for the markets to close before we can comment.” Archive photo of a Talgo train.
The Ganz-Mávag Group’s entry into Talgo will ultimately not happen. On Tuesday, the Council of Ministers decided to reject the Hungarian consortium’s acquisition of the Spanish train manufacturer, citing strategic interests and Spain’s national security. The government has never concealed its reservations about the offer, led by businessmen close to Prime Minister Viktor Orbán and Hungary’s state investment fund, Corvinus.
The government emphasized that the transaction, officially submitted in March 2023 but under negotiation since November of the previous year, was „thoroughly analyzed” by the Foreign Investment Council (Jinvex), a body under the Ministry of Economy. Experts highlighted that the acquisition would pose a risk to national security and public order.
The Council of Ministers is empowered to block foreign acquisitions under a protective measure in place until the end of the year, regulated by Royal Decree 571/2023 of July 4 on foreign investments. This measure aims to prevent weakened companies from being taken over by foreign capital following the pandemic and the Russian-Ukrainian conflict. In the case of Ganz-Mávag, there are concerns about potential ties to Vladimir Putin’s Russia.
