Hungarian investors have submitted a Public Acquisition Offer (OPA) to take control of Talgo through Ganz-Mavag Europe (GME). The request was made on March 7, despite the Government considering the operation hostile. The application is subject to approval from the General Directorate of International Trade and Investments and the financial markets regulator will not publish it until authorized by the DGCII.
Talgo, owned by the Trilantic fund, has faced significant delays in delivering train fleets to major operators, leading to demand for compensation. To address these capacity issues, Hungarian investors have included an industrial plan in their brochure that aims to potentially move production to Hungary. Although some Talgo shareholders have viewed the Hungarian offer favorably, the Government’s stance remains uncertain.
The Council of Ministers is not required to respond within a specific timeframe to the OPA request. The nationalist Hungarian Prime Minister’s government stands in contrast to the Spanish government, which may reject the proposal if any ties to Russia or China are perceived. If the OPA is rejected, Talgo’s issues are not likely to disappear, highlighting the need for a capital and industrial plan partner. While the situation remains pending, the challenges faced by Talgo underline the importance of finding a suitable solution for the manufacturer’s future.
