The government rejected this Tuesday the Public takeover bid 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, the Ministry of Economy explained in a note. It does so after a committee of experts evaluated the operation.
This authorization was requested by the investor because legal condition for the execution of the public purchase offer for 100% of Talgo – which implied a valuation of the company at 620 million euros – “and, therefore, it will not be able to take place”, added Economía.
The decision adopted at the Council of Ministers meeting comes after the Foreign Investment Council – a body involving various ministries, headed by the Ministry of Economy – considered that the acquisition of Talgo by the Hungarian group would entail “insurmountable” risks to guarantee national security and public order.
The decision was brought forward this morning by the Basque newspaper ‘El Correo’, to which few The National Securities Market Commission (CNMV) reacted in the afternoon suspend the Spanish manufacturer’s quote pending official communication of the operation.
The rejection of the operation occurs in application of regulations relating to the control of foreign investments and in full compliance with Community law and the competences of the European Union in the field of foreign direct investment, protection of the internal market and free movement of capital, Economy added.
The Spanish regulatory framework is “balanced and constitutes an international reference” by making the attraction of investments and the defense of national interests compatible, he stressed. For the government, Talgo is a strategic company in a key sector for economic security, territorial cohesion and industrial development of Spain.
The public offer for 100% of Talgo presented by the Hungarian consortium proposed five euros per sharewhich amounts to valuing the company at 620 million euros. The shareholders of the Spanish manufacturer supported the operation.
