The Spanish government has finally rejected the takeover of Talgo by the Hungarian group Magyar Vagon. In March, the industrial consortium submitted an offer worth 617 million, or 5 euros per share, for the only Spanish manufacturer of high-speed trains. Spain’s strategic interests and national security must be protected, a government spokeswoman said after a cabinet meeting on Tuesday. The government has never made a secret of its concerns about the offer from the Hungarian consortium, which includes the sovereign wealth fund Corvinus and business people who are involved in it Hungarian Prime Minister Viktor Orbán is said to be close. Suspected connections to Russia also played a role in the decision.Trading in Talgo shares temporarily suspendedThe Committee for Foreign Investment (JINVEX), which is affiliated with the Ministry of Economic Affairs, made the recommendation after an examination lasting several months, which the government followed. A statement said Talgo is a “strategic company in a key sector for economic security, territorial cohesion and industrial development,” according to an official communiqué. The Spanish stock market regulator temporarily suspended Talgo’s listing at midday. The price fell by up to 10 percent in the afternoon. On Tuesday in Madrid, legal action by the Hungarian consortium and minority shareholders was not ruled out. According to press reports, they expressed their intention to go to court against any government interference.More on the topicThe government would “do everything in its power” to prevent the sale, Transport Minister Óscar Puente said in March when the offer was made official had become. Spain’s left-wing minority government has intervened several times in the past when strategically important companies were targeted by foreign investors. The left-wing coalition partner Sumar wants to bring important companies under greater state control. A sale of the world’s twelfth largest railway manufacturer, which reported record figures last year, would have made sense in terms of industrial policy. In addition to money, the Hungarians also offered the production capacity that Talgo urgently needs to process the many orders that also come from Deutsche Bahn. Czech railway manufacturer Škoda Group was also interested in Talgo, which was well received by the Spanish government. There have been contacts since spring. In July, Talgo confirmed a bid for a “merger and industrial integration,” Spanish media reported at the time.
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