“The small fish eats the big one” captures the opening corporate move of the year: a public-to-public acquisition from the Spanish train manufacturer Talgo by the Hungarian consortium Magyar Vagon. The investment group from Central Europe reported 2022 revenues around 254.7 million euros, a figure far below Talgo’s business, which closed the last year with turnover exceeding 652 million euros, nearly three times larger than the Hungarian conglomerate.
Ganz-Mavag Europe Zrt., the entity launching the takeover bid, derives its income from several subsidiaries: MAV Vagon contributing 109.6 million, the train maker DJJ with 77.1 million, and Ganz-Mavag’s own international business at 68 million. The visible gap in revenue between these entities is best understood as a sign of external financial backing behind the smaller buyer’s effort.
In this case, the backing is public knowledge. Forty-five percent of the consortium behind the operation belongs to the Hungarian state itself. Through Corvinus, a fund created to support the country’s economic development beyond its borders, it provides the financial muscle needed by the private investor group.
Catalysts Behind Talgo’s Figures
Talgo, the Spanish rail manufacturer, presents figures in a different league. By the end of 2023, its order book stood at about 4.223 billion euros, up 54 percent from the previous year, following contracts valued at 2.1 billion euros. Among the top orders, Talgo has designed and manufactured 79 Intercity Talgo 230 trains for Deutsche Bahn, the German rail operator; 16 Intercity Talgo 230 trains for DSB in Denmark; and the development of 23 high‑speed locomotive units, plus maintenance for 13 trains, with an option for 12 additional units, for Renfe in Spain.
The ongoing strength of Talgo’s portfolio underscores the size and scope of its manufacturing and maintenance activities across Europe and beyond, illustrating why a strategic investment blend with a Hungarian partner would attract attention in the rail industry and capital markets alike.
Talgo–Magyar Vagon: a 700‑million‑euro scale
According to Magyar Vagon’s distributed note, the merged group, if the fusion between the Hungarian consortium and Talgo succeeds, could surpass 700 million euros in turnover and would deploy roughly 5,550 employees worldwide with operations in the United States, Europe, Africa, and the Middle East. The note frames the deal as enabling the new entity to tackle the modernization challenges facing rail transportation amid the push toward decarbonization.
The investor group led by András Tombor seeks to strengthen Talgo’s industrial capacity, especially in light of delays in some orders already due with Renfe. The Spanish company would gain access to Magyar Vagon’s industrial expertise to address its sizeable order backlog, support growth, and accelerate international expansion in both manufacturing and rail maintenance. Additionally, the consortium aims to acquire control of Talgo’s railway technology and patents to safeguard and leverage future competitive advantages.
The strategic intent, as outlined by the Hungarian leadership, emphasizes improving Talgo’s production resilience and expanding its footprint across critical rail corridors. The collaboration would potentially allow the combined entity to pursue new contracts, while ensuring continuity for existing orders and bolstering Talgo’s capacity to meet the evolving needs of its international clients.