The Hungarian group Ganz-Mavag Europe (Mayar Vagon) will take “all legal action at its disposal”, both in Spain and in the European Union, to defend the legitimacy of its offer for 100% of Talgo, EFE learned from sources in the consortium.
“The offer meets all legal requirements ” according to the same sources. The government rejected this Tuesday the public purchase offer presented by the Hungarian group Ganz Mavag (Magyar Vagon) on Talgo, alleging “insurmountable” risks for the protection of strategic interests and national security of Spain, explained in a note from the Ministry of Economy.
This authorization was requested by the investor as a legal precondition to the execution of the public purchase offer for 100% of Talgo – which implied a valuation of the company at 620 million euros – “and, therefore, not can take place“, added the economy.
According to the foreign investment legislation, when an operation exceeds 500 million euros must be authorised by the Executive. The rejection of the operation takes place in application of the regulations on the control of foreign investments and in full compliance with Community law and the competences of the European Union in matters of foreign direct investments, protection of the internal market and the free movement of capital. added.
On April 4, the Hungarian consortium requested authorization from the CNMV for the takeover bid for Talgo, targeting 100% of its capital for a total amount of 619.3 million euros and at a price of 5 euros per share. The transaction was guaranteed by a Hungarian bank.
Various voices within the government have expressed their opposition to the purchase, particularly because of the relations between the Hungarian investor and the government of the controversial Viktor Orbanand defended that Talgo is a strategic company, with a unique technology in the world, and which plays a fundamental role in rail transport.
