Magyar Vagon, the Hungarian consortium behind the public takeover bid for Talgo, signals its intention to reintroduce an offer to acquire the company after the Spanish government veto was announced on grounds of national security and public order. This stance was disclosed by the Budapest-based group in a relevant filing with the National Securities Market Commission, where it stated that within the next two months it plans to file a contencioso-administrative remedy before the Administrative Court of the Supreme Court to challenge the government’s decision, while seeking damages and compensation for the alleged losses caused by the veto.
The Hungarian consortium has now confirmed that, given the severe harm it says the Spanish government’s decision inflicts on its legitimate interests, it has decided to abandon the bid for 100 percent of Talgo. The offer had already been admitted to processing by the market regulator on April 22, amid the uncertainty created by the government veto regarding the timelines of the bid and the costs associated with keeping the offer alive, as reported by this publication last week.
The party that had aimed to buy Talgo has explained that it will review and determine the appropriate steps to defend its legitimate interests, including seeking provisional measures if warranted. This is to be done without prejudice to other actions that may be pursued before different authorities, particularly those of the European Union, where parallel procedural avenues could exist.
In a letter from Budapest dated last Thursday, Magyar Vagon contends that the government’s decision rests on no solid justification and leaves the consortium exposed. It argues that the deal meets all applicable legal requirements and that there are no solid grounds for opposing it by the Spanish government. On this basis, the Hungarian company believes the decision is not lawful and vows to defend its legitimacy through all available channels.
The dispute underscores a tense intersection between European market players and national policy measures, highlighting how sovereign decisions can influence cross-border investment and the fate of major industrial acquisitions. The parties involved are expected to pursue a range of remedies and potentially escalate matters to European Union institutions, should the need arise, as they seek to clarify jurisdiction, enforce rights, and ensure that legitimate business interests are respected across borders.