The government is preparing to veto the purchase of Talgo by a Hungarian firm because it believes Russian interests are behind it

Purchase Talgo For Hungarian business group He would rather derail than reach the next station. He Minister of Transport and Sustainable Mobility Oscar Puenteassured today that The government will “do everything possible” to reject a takeover prepared by the Hungarian consortium Ganz-MaVag Europe, in which 55% is owned by Magyar Vagon and another 45% by the state fund Corvinus, given that it suspects that Russian interests may exist.

In November, Talgo confirmed that a Hungarian consortium, later named Ganz-Ma Vag Europe, was preparing a bid to acquire Talgo at a price 5 euros per share, equivalent to a company valuation of approximately 620 million euros. The takeover bid was announced in anticipation of the consortium reaching an agreement with the Spanish railway manufacturer’s creditor bank, an agreement that has been taken for granted in the last few hours and which sent Talgo shares higher at some points in today’s session. %.

However, Puente changed the pace of the operation, saying what he did behind the scenes after the closure of the II Congress on Smart Mobility and Sustainable Development, organized by Grupo Prensa Ibérica and reported by the newspaper El Periódico de España.

Connections

The government’s reluctance to carry out the operation will be due to the fact that among the directors of the Hungarian consortium there are Andras Tamborwho is also one of those who signed the note he sent National Commission for Markets and Securities (CNVM) in which Ganz-Ma Wag Europe turned out to be a fan of Talgo. This is a businessman whom some sources associate with Viktor Orbán’s security cabinet from 1998 to 2002.. Orbán, the current president of Hungary, is a politician considered very close to Putin.

Magyar Vagon was also created in 2020 by the company Christophe Szalay-Bobrownickicurrent Hungarian Defense Minister under Orbánand gained a foothold in the railway sector through privatization in Hungary, taking advantage of its proximity to the Orbán government.

The acquisition of Talgo depends not only on an agreement between buyer and seller, but also on executive approval, since, as Industry Minister Jordi Jereu has publicly stated, it is a “strategic” company for Spain. For this reason, it must receive the approval of the Council of Ministers.

Future plans

DJJ Group, a subsidiary of Magyar Vagon through which the group will formulate the takeover bid for Talgo, has more than 95 years of experience in the sector and a production plant in Dunakeszi (Hungary). By acquiring a Spanish company, it aims to achieve synergy to create a strategic and powerful project in the industry at the international levelThis was reported by sources in the railway sector.

Among the attractions that Talgo may have for this company is Ukraine. Although the country is still fighting a bloody war with Russia, the juicy recovery plans announced after the end of the conflict are already forcing many companies to take their stand. In the railway industry, Talgo has a competitive advantage in that it produces trains with moving tracks

. The Ukrainian gauge is not similar to the gauge of the rest of Europe. This Talgo technology is therefore an important advantage in connecting Ukraine’s railway network with the rest of Western Europe.