Will Hungarian investors seize Spain’s largest rail vehicle manufacturer with Russian funds?
The Hungarian company Ganz-Mavag Europe Plc., a member of the MaVag Group, has initiated a voluntary takeover bid for 100% of Talgo’s shares, which is a Spanish manufacturer of high-speed trains. The move is aimed at fostering synergies between the two companies.
György Bacsa, the chairman of Ganz-Mavag Europe Plc., expressed that Talgo’s board of directors finds the offer favourable, emphasising the transaction’s focus on enhancing manufacturing and development cultures jointly. The strategic partnership is anticipated to benefit both parties, which will enable Talgo to expand its capacity and strengthen its presence in European and Eastern markets while facilitating MaVag’s manufacturing capabilities, according to Index.
The offer and the plans
Despite the struggling railway industry in the aftermath of the regime change in Hungary, MaVag has emerged as a significant player who sells Hungarian-built trainsets globally. Seeking further growth, MaVag identified the need for international strategic partnerships, finding a potential ally in the Spanish manufacturer. The board of directors of Talgo expressed favorability towards the offer from Ganz-Mavag Europe Plc. and emphasised its benefits for shareholders.
The chairman of the board of directors of Ganz-Mavag Europe Plc. stressed the importance of maintaining Talgo’s independence and technological prowess while committing to supporting its strategy as a Spanish-listed company. The chairman highlighted the shared goal of fostering European industrial development and sustainable mobility through strategic cooperation.
Spanish Transport Minister opposes the Hungarian bid
The recent developments in the Hungarian bid for the Talgo train factory include the Hungarian group’s agreement with Talgo’s creditors providing financial clearance. However, the Spanish Transport Minister Óscar Puente vows to reject the bid because of suspicions of Viktor Orbán‘s involvement and potential Russian connections within the Hungarian group, according to Telex.
The Spanish government led by Pedro Sánchez expressed scepticism towards Viktor Orbán’s involvement in the Hungarian bid for Talgo. The reason for the scepticism is fear of potential ties to Russian investors or the Hungarian state. Despite claims in Spanish business papers regarding the financial backing of the Hungarian group, data from Hungarian sources contradicts this information.
The Hungarian bidder must secure an agreement with Talgo’s lending banks to ensure financial stability as any change in ownership could prompt debt recall. However, political approval remains a necessity with documentation needing submission to Spain’s Ministry of Economy and subsequent review by the Foreign Investment Council. The recent statement from Minister Puente suggests a preemptive rejection of the bid by the Council of Ministers.
Is there a Russian connection?
The Hungarian group’s corporate registry revealed a Russian connection but the Russians sold their 50% stake in the company to MVBV Plc. after the start of the Ukrainian and Russian conflict. The other 50% owner is Cato Investments which is linked to András Tombor.
As of recently, the Hungarian state has acquired a 45% stake in the project company which oversees the acquisition of the Spanish train manufacturer for EUR 7,000, according to HVG. Moreover, a member of the National Capital Holding’s board is suspected of joining the project company’s supervisory board, which can lead to the growth of the Hungarian’s state influence over the company.
The majority shareholder of the company, the Hungarian Wagon Group, which was founded by the Minister of Defence Kristóf-Szalay-Bobrovniczky, is now owned by a private equity fund. This fund, which was formed through the government‘s privatisation of MÁV’s vehicle manufacturing and repair capacity, faces challenges in fulfilling significant orders from Egypt, which is also part of a partnership with Russia.
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11 Comments
This is a Russian-Hungarian mafia money bid for a Spanish rail manufacturer. It should absolutely be quashed. There is no end to the Orban-Fidesz Rouble Right mafia’s tentacles that aim to control all business in Hungary. I see mentioned in the article that the Hungarian defence minister has business ventures that I am sure he exploits through Fidesz corrupt mafia dealings just like any other Fidesz appartchik.
Wonder, worth some real deep thought, with the intensifying decline of the Hungarian / United States of America relationship, if this “SLEEZY” plan to a high degree, simple on the grounds, that there is mentioned the name Victor Mihaly Orban and Kristof Szalay-Bobrovniczky – and Russia, if this was to have any CHANCE to occur, and in fact papers/contracts where to be signed, or even signed, if the United States of America would commence – instigate SANCTION’s against and on Hungary ?
PLENTY of Cards on the table, options that the United States have at there disposal to inflict rightly against Hungary through the name of Victor Mihaly. Orban his on-going berating defaming of America that the likelihood of the commencement of SANCTIONING would be rising rapidly in the paper work marked PRIORITIES on desks in Washington DC, that sooner than later will be “signed off” on against Orban / Hungary.
Orban walks a PLANK that through the intensifying pressurization on him personally, nears COLLAPSING.
When it gives way, it will Hurl him sooner than later, into what lies below underneath the plank, that is a nadir of an un-known.
All agreements and transactions that enriches a Hungarian compatriot and is good for the Hungarian nation should be ensued.
We know of the acclaimed movie -The Colour Purple.
It’s list of stars made a “strong” impression to movie lovers back in 1985, and awards won by this movie – impressive.
Rumor has it, the making of a film to be titled – The Colour Red.
It will star – drum roll please – marievontheresa.
“Patriotism is the last refuge of the scoundrel.” There is an old bit of American wisdom for Maria von Theresa.
You dreamer, do you not think that American and European globalist do not practice the same. Take off your rose-colored glasses. Globalists’ aim is total control. It is nice that there can be competition between power grabbing globalists; hope Hungary gets a piece of the pie. That is capitalism..
The end … Justifies the means. Correct @mariavontheresa?
Those “Hungarian compatriots” you reference are actually Politicians friends, family, and toadies. The Entitled Class! Nothing to do with Hungarian citizens.
PS I deal with foreign investors. The constant question is “exit” in due time.
Potentially being bought out at a bargain basement price after a tap on the shoulder by one of the Entitled Class is a bad answer.
https://www.songfacts.com/lyrics/10cc/dreadlock-holiday
Norbert, would you prefer if a French/Russian conglomerate or British/Russian conglomerate bought the company or Bezos/Russian conglomerate bought the Spanish company?
Are you that naive, that is almost impossible.
@mariavontheresa – as the Spanish Government, I would simply earmark the industry as “strategic” to Spain (especially where we are going with ESG) and refuse to approve the sale.
Re financing with Russian backing, I do not believe anyone in Europe or the US in their right minds would do anything with Russian elements – financing or otherwise. Well. All bar one!
At this moment in time – there are no EU or Americans in there right minds- the largest country in Europe has the largest city in Europe and over 150 million people had a election a few days ago with 85% of the votes to Putin. Mean while all elections have been canceled in UKraine for several years, because they know what the results would be- can’t have that as all the billions to Ukraine will stop. 10 years ago they thought Russia would bend over and let the US and EU move in.
Some how the election has little coverage in the west. Imajine the most famous American president and his brother we’re killed with help of the help of the CIA. They were both the shining stars of my lifetime.