Hungarian society Hungarian chariot announced on Thursday the withdrawal of its public takeover bid for Spanish company Talgo, after the Spanish government vetoed the acquisition attempt on national security grounds.
The company appealed the government’s decision, but ultimately decided to withdraw the offer 620 million which he launched for 100% of the railway manufacturer.
The decision was adopted at the meeting held this Thursday in Budapest by the consortium’s board of directors.
The government’s “no”
For the government, the note sent by the Economy states: “Talgo is a strategic company in a key sector for the economic security, territorial cohesion and industrial development of Spain.” However, the Council of Ministers declared the information contained in the report analyzing the acquisition operation classified.
“The detailed analysis carried out determined that the authorization of this operation would result insurmountable risks for national security and public order,” said the department headed by Carlos’s bodyThe decision was taken on the basis of a law that allows the executive to veto foreign companies wishing to take control of Spanish companies considered strategic.
The Spanish executive says it feels supported by Brussels in its veto of the public takeover bid by the Hungarian public-private consortium, since the European Commission (EC) declared on 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 belongs to the member states. We have no particular comments,” said the community spokesperson. Francesca Dalboni at 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”.
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