- Title: Spain blocks Hungarian consortium Ganz-Mavag's takeover of train maker Talgo
- Date: 29th August 2024
- Summary: MADRID, SPAIN (AUGUST 29, 2024) (REUTERS) CAR DRIVING PAST PARKING LOT OUTSIDE HEADQUARTERS OF SPANISH TRAIN MAKER TALGO TALGO LOGO ON BUILDING'S FACADE SPANISH FLAG, TALGO LOGO VARIOUS OF EXTERIOR OF TALGO HEADQUARTERS BUILDING AND SPANISH FLAG SEEN REFLECTED FROM MIRROR TALGO, MADRID REGIONAL GOVERNMENT, EUROPEAN UNION AND SPANISH FLAGS WAVING OUTSIDE BUILDING CONSTRUCTI
- Embargoed: 12th September 2024 13:27
- Keywords: Hungarian consortium Ganz-Mavag Hungary Spain Talgo trains
- Location: MADRID, SPAIN
- City: MADRID, SPAIN
- Country: Spain
- Topics: Europe,Government/Politics
- Reuters ID: LVA001014529082024RP1
- Aspect Ratio: 16:9
- Story Text: The Spanish government rejected on Tuesday (August 27) the planned takeover of Spanish train maker Talgo TLGO.MC by the Hungarian consortium Ganz-Mavag,
Shares in Spain's Talgo TLGO.MC dropped as much as 10% on Tuesday after the government blocked a 619 million-euro ($691 million) takeover bid for the train maker from Ganz-Mavag due to national security concerns.
Spanish stock market regulator CNMV halted trading in Talgo shares in Tuesday's early afternoon after the decision was first reported by local media. The shares fell as much as 10% when trading resumed following the ministry's statement, and were down 8.3% in mid-afternoon trading.
A Talgo spokesperson said the company would wait for information from Ganz-Mavag on the next steps, adding that Talgo "will make its own decisions".
A spokesperson for Ganz-Mavag in Spain said the consortium would "take legal action, both in Spain and in Europe" against the Spanish government's decision.
The Spanish Association of Minority Shareholders of Listed Companies said it would challenge Spain's regulation allowing the suspension of foreign investments in domestic courts and was weighing bringing the case before the European Union.
Ganz-Mavag, which includes Hungary's state fund Corvinus, launched a public tender offer in March for all the shares in the manufacturer of Spain's signature AVE high-speed trains.
Spanish officials have repeatedly described Talgo as a strategic company, given its access to sensitive information on the country's railway network and, by extension, national security.
(Production: Guillermo Martinez, Miguel Gutierrez) - Copyright Holder: REUTERS
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