The Spanish government has rejected Talgo’s takeover bid to protect “national security”, following a law that aims to prevent foreign companies from taking advantage of the stock market’s decline to take control of Spanish companies.
The Foreign Investment Council of the Ministry of Economy, Trade and Affairs of Spain has rejected the public takeover bid (OPA) made by the Hungarian group Ganz Mavag (Magyar Vagon) to acquire 100% of Talgo, citing national security reasons.
This was decided by this body charged with evaluating the takeover operations of Spanish companies as a result of a law approved in the middle of a pandemic to prevent foreign companies from taking advantage of the fall of the companies on the stock market. control over Spanish companies.
In this sense, the National Securities Market Commission (CNMV) has decided to suspend the listing “cautiously and with immediate effect” from rail builder Talgo on Tuesday, when the company’s shares fell 0.93% to 4.26 euros.
The Spanish government has decided to reject the takeover bid, saying approving it would “entail risks for guaranteeing national security and public order”.
In addition, he 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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