Spain Halts Hungarian Talgo Train Factory Deal Due to Orbán’s Russia Connections
Hungary’s attempt to acquire Spanish train manufacturer Talgo thwarted by political concerns
The Hungarian Ganz-MaVag consortium recently made a sizeable offer to purchase 100% of the shares of Spanish train manufacturer Talgo. However, the deal was derailed from the start as the Spanish government opposed the transaction, citing Hungarian Prime Minister Viktor Orbán’s close ties to Russia.
Rumors had already circulated before an official bid was even made that Spain would block the purchase due to concerns over Orbán’s pro-Russian policies. Despite Ganz-MaVag’s eagerness to acquire Talgo, Spanish authorities made it clear that the deal was off the table.
The decision-making process was protracted, with the Foreign Investment Council of Spain’s Ministry of Economy delaying the anticipated decision until August 27. The final decision was reached to reject the foreign direct investment from Ganz-MaVag in Talgo due to national security and public order risks identified during the investigation, as reported by Portfolio.
Ganz-MaVag had put forward a generous bid of EUR 619 million for Talgo, which was valued at EUR 590 million at the time. However, Spanish Prime Minister Óscar Puente strongly opposed the sale, citing Hungary’s ties with Russia, and vowed to block the deal.
Spain stuck to its decision, extending deadlines to allow other potential buyers like Switzerland’s Stadler Rail and the Czech Republic’s Škoda to make offers. The Spanish government also requested additional documents from the Hungarian consortium, further delaying the process.
As a result of the blocked acquisition, Hungary now finds itself in a precarious railway situation. Minister of Transport and Construction János Lázár had hoped that acquiring Talgo would provide valuable knowledge for producing new, domestically-made train carriages. Now, Hungary faces a 4-year wait for new carriages and plans to purchase outdated 20–30-year-old Western European train cars as an interim solution.
This setback highlights the challenges Hungary faces in modernizing its rail infrastructure and the impact of political considerations on important business transactions.
[Featured image source: depositphotos.com]
