Spain blocks Hungarian Talgo train factory deal over Orbán’s Russia ties
Hungary’s Ganz-MaVag consortium made a generous offer to acquire 100% of the shares of the Spanish train manufacturer Talgo. However, from the start, the Spanish government opposed the deal, citing Hungarian Prime Minister Viktor Orbán’s pro-Russian policies. Eventually, Spain successfully prevented the transaction, leaving Hungary reliant on outdated, 20–30-year-old Western European train carriages.
Generous offer derailed by political concerns
Months ago, Ganz-MaVag submitted an official bid for Talgo’s shares, but even before the formal offer, rumours circulated that Spain would block the purchase due to concerns over Orbán’s close ties to Russia. Spanish authorities had made it clear that such a deal was not on the table.
The decision-making process was drawn out. The Foreign Investment Council, part of Spain’s Ministry of Economy, delayed the anticipated July decision until 27 August, when it was finally confirmed that the sale would not go through, as reported by Portfolio.
Spain’s economic ministry issued a statement explaining that the cabinet agreed to reject the foreign direct investment from Ganz-MaVag in Talgo due to national security and public order risks identified during the investigation. Talgo holds access to sensitive information, which heightened the concerns.
National security fears lead to final rejection
Back in March, Ganz-MaVag had placed a bid of EUR 619 million for Talgo, which was valued at EUR 590 million at the time—a notably generous offer. Despite this, Spanish Prime Minister Óscar Puente strongly opposed the sale, citing Hungary’s close ties with Russia, and vowed to block the deal.
Spain followed through on this promise, consistently extending deadlines to give other potential buyers time to make offers. Companies such as Switzerland’s Stadler Rail and the Czech Republic’s Škoda were considered. Meanwhile, the Spanish government also repeatedly requested additional documents from the Hungarian consortium, further stalling the process.
Hungary’s railway situation remains precarious. According to János Lázár, Hungary’s Minister of Transport and Construction, acquiring Talgo would have provided valuable knowledge for producing new, domestically-made train carriages. Instead, Hungary now faces a 4-year wait for new carriages and, as an interim solution, plans to purchase decommissioned 20–30-year-old Western European train cars.
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Featured image: depositphotos.com
I am sure the Orban government has no problem buying Russian or Chinese rail carriages. Just make sure that they have air-conditioning. Onward comrades into the “Eastern Opening” that your glorious leader Viktor Orban is taking you. Don’t worry. He intends to be your leader for life. Isn’t that fantastic?
Maybe instead use the money to renew domestic rails – you know, so that trains won’t derail, and maybe install a few air-conditioning units in the passenger compartments of currently running trains.
Hungary is starting to experience the real world ramifications of their foreign policy and general policy of antagonism towards the west. No doubt they’ll be livid that their ‘generous’ offer for Talgo was rebuffed, they’ll level the accusation that business shouldn’t involve politics, that is was a stitch up based on ‘lies’ and so on. Good on Spain I say for standing their ground and rejecting Hungarian involvement in what they view as a strategic asset. They protected their sovereignity and took a decision in the wider interest of Spaniards.
As for Chinese rolling stock, Larry, it’s going to be struggle to get it certified to run in neighbouring countries. Austria is home to the most excellent Siemens rail and the Austrians will oppose the use of Chinese rolling stock running over the border citing safety and compatability concerns. It’s essentially a non-starter, moreover the Chinese won’t sell modern trains for a price low enough for Hungary to afford, so it’s back to competing with the Bulgarians, et al, to buy rejects from western Europe.
Government interfering in the free market, and for naked, petty political reasons.
What could go wrong!?
Hungary, grows in being a MAJOR location, of the NEW – “Silk Road” in the DRIVE of the East in MEETING – it’s INVASION of the WEST.
Victor Mihaly. Orban – it is known throughout the Width and BREATH of country’s not just in Europe – the European Union & N.A.T.O. but GLOBALLY by country’s GOVERNED under DEMOCRACY – the “Gofer” role the “present” – Prime Minister of Hungary and his European Union Presidency Role – his LOYALITIES – his FOCUSE.
It GROWS in GLOBAL knowledge and OBJECTION’s – as is the explanation expressed in this article, and in previous days with SANCTIONS placed on Hungary – through the Victor Mihaly. Orban – his Fidesz Government of Hungary, there MARRIAGE to China & Russia.
” Now, this is not the end.
It’s not even the beginning of the end.
But it is, perhaps, the end of the beginning.”
@michaelsteiner – “interfering in the free market” – is this like introducing price caps and things? In which case, you may also want to engage in some good old raging against the machine! Because you do know that recently, our Politicians forced retailers and gas stations to make a negative margins on goods sold (e.g. at a loss), right?
Lastly … Do you recall the saga around the sale of insurer Aegon? In summary, the Hungarian government vetoed VIG’s acquisition of AEGON Group’s Hungarian subsidiaries, arguing that the acquisition “threatened Hungary’s legitimate interests”. Obviously you can always have the European Commission investigate, however the damage was already done:
https://ec.europa.eu/commission/presscorner/api/files/document/print/en/ip_22_1258/IP_22_1258_EN.pdf
@ Steiner, one could level the same accusation at the Hungarian government in all manner of market sectors, with price caps, extra profit taxes, outsize state owned involvement in certain industries and so on. These moves are mainly driven by party political or ideological reasons. I believe if Ganz-Mavag made new trains (as they once used to) and were approached by Talgo with a buyout offer, the Hungarian government would certainly block the acquisition, if not on national security grounds then on the basis that strategic national industries like a rolling stock manufacturer should remain within Hungarian ownership.
What, did you think your Dear Leader could keep taking a giant turd on the EU and member-states and they wouldn’t push back? You people are fools being led like lambs in to the hands of China and Russia. Have fun in the bread lines, comrades!