The Spanish government has rejected the Talgo takeover bid in order to protect “national security”, following the law that seeks to prevent foreign companies from taking advantage of the stock market crash to take control of Spanish companies.
The Foreign Investment Board of the Ministry of Economy, Trade and Enterprise of Spain has rejected the Public Acquisition Offer (OPA) presented by the Hungarian group Ganz Mavag (Magyar Vagon) to acquire 100% of Talgo, citing reasons of national security.
This is what the body in charge of evaluating the acquisition of Spanish companies has decided, following a law passed in the midst of the pandemic to prevent foreign firms from taking advantage of the fall in the stock market of companies to take control of Spanish companies.
In this regard, the National Securities Market Commission (CNMV) has decided to suspend “as a precautionary measure, with immediate effect” the listing of railway constructor Talgo on Tuesday, when the company’s shares fell by 0.93% to 4.26 euros.
The Spanish government has decided to reject the takeover bid because its authorisation “would entail risks to guarantee national security and public order”.
He also doubted whether the Ganz Mavag (Magyar Vagon) factories had sufficient capacity to solve all of Talgo’s production problems.
Source: Eitb
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