The government is already reviewing the public purchase offer from Magyar Vagon, the Hungarian company, for Talgo. Since March 22, the General Directorate of International Trade and Investments, a unit under the Ministry of Economy, Trade and Enterprise, has held the formal prospectus detailing all conditions and plans that the northern European buyer has for the Spanish train maker. This information comes from sources close to the operation and reported by ACTIVOS, the economics section of Prensa Ibérica.
The bid process began when Magyar Vagon filed with the National Securities Market Commission (CNMV) its intent to pursue a corporate operation involving Talgo. Following that step, the Hungarian firm needed to prepare a formal prospectus for submission to the executive branch and the stock market regulator. The document was delivered to the competent authority before the Easter holidays for review, with the government already working on it. Specifically, once the Directorate General receives the formal application, it forwards it to the Foreign Investment Board (JINVEX). This body does not grant or deny the request itself; it prepares a mandatory report. The report then goes to the Council of Ministers, which makes the final decision to approve or reject the operation.
At present, the Executive has not expressed its approval of the operation. Even so, Óscar Puente, the Minister of Transport and Sustainable Mobility, said his aim is to oppose the bid amid concerns that the buyer group may be linked to oligarchs connected to Russia or Vladimir Putin’s government. Sources close to Magyar Vagon indicate they are ready to provide any additional information if required, in order to demonstrate that there is no link between the Hungarian offer and the Russian regime.
Road to Government Discussions
In the coming weeks, once Magyar Vagon formalizes the prospectus at the CNMV, a road show with the government will begin. Company representatives are scheduled to meet with officials from various ministries, especially Economy, Transport, and Industry, as well as with Renfe and other institutions, to reassure stakeholders about Talgo’s Spanish identity, the jobs at its factories, and the industrial plan they intend to implement to boost the train maker’s capacity. Moreover, in their initial letter to kick off the offer, the buyer consortium stated that it does not plan to delist Talgo from the stock market, which would help keep the company’s financials transparent and accessible to investors. [Citation: government briefings and company letters cited by the press sources.]
Magyar Vagon assesses Talgo’s total value at 619 million euros, equivalent to 5 euros per share, compared with the current trading price of about 4.3 euros. As of now, the majority shareholder, the investment fund Trilantic, is aligned with the price Magyar Vagon is prepared to pay and plans to participate in the offer provided the government grants its approval. Trilantic’s consent is contingent on the executive sign-off, ensuring that the transaction aligns with national interests and market fairness. [Citation: market disclosures and investor statements.]