According to Madrid’s Cinco Dias, although Transport Minister Óscar Puente and Finance Minister María Jesús Montero have been looking for an alternative to the Hungarian offer of 619 million euros, they have so far failed to find other industry investors.
During the attempts of the Spanish cabinet, only one investor, CriteriaCaixa, showed interest, but they would only be willing to participate in the transaction together with a sector expert. The Foreign Investment Council is currently working on a report based on which the government could decide on the matter within three months, while their goal remains to protect the sector.
Meanwhile, several well-known manufacturers, including CAF and Stadler, have already rejected the Spanish government’s invitation, while other big names such as Alstom and Siemens have shown no interest.
The reasons for the lack of interest in Talgo are not entirely clear, given that the company’s order volume is constantly increasing. In 2023, the company achieved a revenue of 652 million euros with an EBITDA margin of 11.5 percent, and Talgo’s technological developments are considered to be particularly important in both Europe and the MENA region.
The Hungarian company’s attention was drawn to the limitations of Talgo’s production capacities, since it could provide a solution to the ever-increasing order stock with its own unused capacities.
Although the Spanish government still hopes to find the ideal investor for Talgo, the success of these efforts is very questionable for now. And the new owner would not only gain access to a new labor base, but would also have to solve the challenges of managing a significant backlog.
Cover image source: Getty Images
Tags: Hungarians closer acquiring Spanish super train manufacturer
