Latest News

Spain blocks Hungarian consortium Ganz-Mavag's takeover of train maker Talgo, report says

The Spanish government has obstructed the takeover of Spanish train maker Talgo by the Hungarian consortium GanzMavag due to nationwide security issues, Europa Press news agency reported on Tuesday, pointing out unidentified federal government sources.

Government representative Pilar Alegria informed a news conference that the problem had been discussed throughout Tuesday's cabinet meeting but declined to validate the choice.

I think everybody understands we are handling a noted company and therefore interactions have to be carried out through the proper channels once the markets are closed, Alegria said.

Spokespeople for Spain's Economy Ministry did not instantly comment. Talgo and Ganz-Mavag did not right away react to Reuters' ask for comment.

Ganz-Mavag, that includes Hungary's state fund Corvinus, released in March a 619 million euro ($ 691.18 million) public tender offer for all shares of the producer of Spain's. signature AVE high-speed trains.

Stock market regulator CNMV suspended trading in Talgo. shares following media reports of the federal government's veto.

Spanish authorities have consistently stated that Talgo is a. strategic business, given its access to sensitive information on. the country's railway network and, by extension, nationwide. security.

(source: Reuters)