Hungarian group Ganz Mavag (Magyar Vagon) has withdrawn its €620 million takeover bid to control 100% of rail manufacturer Talgo after the Spanish government vetoed its offer on Tuesday.
As EFE learned from sources close to the Hungarian group, the decision was adopted at the meeting held this Thursday in Budapest by the consortium’s board of directors.
Does not rule out presenting another offer in the future
Ganz Mavag has agreed to withdraw its takeover bid and to maintain a legal strategy against the decision of the Spanish government, and does not renounce to present another offer in the future to acquire Talgo.
Last Tuesday, the Spanish government vetoed the Hungarian group’s entry into Talgo, considering that there were “insurmountable” strategic interests and reasons of national security.
The Council of Ministers, in its first meeting after the holidays, ratified the position of the Foreign Investment Council (a multi-ministerial body headed by the Ministry of Economy) against the takeover bid for “insurmountable” reasons of national security, which The government has not revealed why it decided to declare the information contained in this case classified.
For its part, the Hungarian consortium announced that it would appeal the decision in all possible instances, both in Spain and in Brussels, according to sources from the group told EFE.
However, the Spanish executive claims to feel supported by Brussels in its veto of the public takeover bid by the Hungarian public-private consortium, since the European Commission (EC) declared this Thursday that it is a decision that corresponds to Spain and that it is not necessary to communicate it to the Community executive.
“The prerogative of these decisions lies with the Member States. “We have no specific comments,” Community spokesperson Francesca Dalboni told the Commission press conference.
Dalboni recalled that European legislation allows Member States to “restrict” free movement within the European Union (EU) for reasons of public security, although the measures adopted must be “justified and proportionate.” EFE
