Talgo takeover bid by Hungarian group blocked over security concerns

The Spanish government rejected on Tuesday the offer by the Hungarian group Ganz-Mavag to take over Talgo, a railway rolling stock manufacturer, citing “insurmountable” risks to the protection of the country's strategic interests and national security, reported the EFE agency.

Government approval was a legal condition for the realisation of the offer to acquire 100 percent of the shares in Talgo, valued at approximately 540 million pounds. According to foreign investment regulations, government approval is required when the transaction exceeds 430 million pounds.

The decision was made at a government meeting when the Foreign Investment Board—an agency that includes several ministries headed by the Ministry of Economy—determined that the Hungarian group's purchase of Talgo would risk the state's strategic interests.

The Spanish media noted that the operation's rejection is carried out in accordance with foreign investment control regulations and with full respect for EU law and the European Union's competencies in direct foreign investments, internal market protection, and the free movement of capital.

The Hungarian consortium Ganz-Mavag submitted an application to the Spanish National Securities Market Commission (CNMV) on 4 April for the authorisation of the offer to take over Talgo, meaning the acquisition of 100 percent of its capital for a total amount of 540 million pounds, at 4 pounds per share.

"Due to warnings from Spanish intelligence, Madrid vetoed the planned Hungarian acquisition of rail manufacturer Talgo. They found worrying ties between the Hungarian government-backed prospective buyer – and Russia," wrote journalist Szabolcs Panyi on the X platform.

Some government members have publicly opposed this offer, highlighting the close relations between the Hungarian investor and Viktor Orban's government. Politicians argued that Talgo is a strategic company with unique technology and plays a key role in railway transport.