The Hungarian consortium Ganz-Mavag, supported by Prime Minister Viktor Orbán, has withdrawn its takeover bid for the Spanish train manufacturer Talgo after the Spanish government blocked the deal on national security grounds, according to people close to the bidder.
Two days after Madrid's veto of the 619 million euro offer, the Hungarian group decided to cancel the purchase while simultaneously initiating legal action against the decision. Despite the withdrawal, the consortium emphasized that it remains interested in collaborating with Talgo and that a renewed offer is not ruled out if the legal challenges prove successful.
The failed takeover attempt is seen as another area of tension between EU member states and Hungarian Prime Minister Orbán, who maintains close ties to Moscow despite Russia's attack on Ukraine. Ganz-Mavag's withdrawal offer is expected to be confirmed in a statement to the Spanish stock market watchdog on Friday, according to informants.
The Spanish government under Prime Minister Pedro Sánchez blocked the bid on the grounds that there was a "risk to national security and public order" – a justification rarely used in the EU. The socialist-led cabinet did not provide further details on the risks and described the analysis underlying the decision as "secret.
**Ganz-Mavag, a consortium supported by a Hungarian state fund, has announced plans to challenge the decision both in Spanish courts and in Brussels. According to EU law, member states can block takeovers for security reasons in certain cases.**
Sure, here's the translation of the heading to English:
"Both Spanish and Hungarian media have linked the decision to Madrid's concerns about Orbán's close ties to Russia and a potential threat to critical rail infrastructure. A EU spokesperson stated on Thursday that such decisions are within the jurisdiction of member states, but they must be justified and proportionate. The case could end up before the European Court of Justice in Luxembourg.
The Ganz-Mavag consortium, in which the Hungarian state fund Corvinus holds a 45 percent stake, made an offer of 5 euros per share for Talgo in March. The rest of the consortium is held by the Hungarian train manufacturer Magyar-Vagon, which in turn is controlled by a private equity fund.
After the decision of the Spanish government became known, the stock price of Talgo fell by 8 percent from the level before the veto.
