The Spanish government has taken the extraordinary step of blocking a €619 million bid by a Hungarian consortium to acquire the Spanish trainmaker Talgo, labelling the move a threat to national security and public order. The decision, announced by the economy ministry on Tuesday, has sparked controversy and promises of legal action from the spurned bidder, Ganz-Mavag.
Ganz-Mavag, a consortium backed by an investment arm of the Hungarian state, has vowed to challenge the Spanish government’s veto in both Spanish and EU courts. The consortium argues that the decision is arbitrary, as Talgo is not a strategic company and lacks technology that could impact national security.
The Spanish government has not provided specific details on the national security risks cited in its decision, stating that the analysis is classified. However, the intervention is said to be in line with national and EU laws on foreign investment, the internal market, and the free movement of capital.
Speculation has arisen in both Spanish and Hungarian media about the potential influence of Hungarian Prime Minister Viktor Orbán’s ties to Russia on the decision. Orbán has maintained some of the closest relations with Russia among Western leaders, despite the ongoing conflict in Ukraine.
The Ganz-Mavag consortium comprises a 45 per cent stake held by Corvinus, a state-owned Hungarian development finance institution, and a 55 per cent stake owned by Hungarian trainmaker Magyar-Vagon. Magyar-Vagon is controlled by a private equity fund owned by executive Csaba Törő and managed through a subsidiary of Hungarian oil company Mol.
The Spanish Association of Minority Shareholders of Listed Companies has also announced its intention to launch legal action against the Spanish government, arguing that the veto harms Talgo shareholders and that the process was “riddled with irregularities”.
The blocked takeover attempt marks the latest in a series of conflicts between EU member states and the illiberal Hungarian premier. As the situation unfolds, the legal challenges and potential ramifications for both Spain and Hungary remain to be seen.
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