In a significant development for Spain's industrial landscape, Sidenor, a prominent steel manufacturer headquartered in the Basque Country, has indicated its interest in acquiring a stake in Talgo, a renowned train manufacturer. This announcement, made in a letter to the stock market regulator, signals Sidenor’s ambition to expand its influence within the transportation sector. Talgo confirmed the potential tender offer but did not disclose specific details regarding the size of the stake or the proposed price, leaving market analysts speculating about the implications of such a move.
Following the announcement, Talgo's shares surged by 6.7% on Thursday morning, reflecting investor optimism about the possible acquisition. Sidenor’s foray into the transportation sector comes shortly after a Hungarian consortium, Ganz-Mavag, withdrew its previous tender offer for Talgo. That bid was blocked by the Spanish government, which raised concerns over national security, given Talgo’s strategic role in managing sensitive railway information.
Sidenor, which operates several steel mills in northern Spain, did not provide further comments on its intentions. However, the company’s interest is seen as a strategic pivot, aiming to strengthen its portfolio by integrating with a key player in the transportation industry. This potential acquisition is particularly notable as the Spanish economy seeks to bolster its industrial capabilities and reduce dependence on foreign entities.
Spanish Economy Minister Carlos Cuerpo expressed government support for a tender offer from a domestic firm like Sidenor. He remarked that the government aims to encourage offers from solvent and strategically important companies. This endorsement is crucial, especially after the government’s decision to veto the Ganz-Mavag bid, which had proposed €619 million or €5 per share, a 17% premium over Talgo's market value at that time.
The government’s concerns over the previous bid were rooted in the belief that Talgo's operations are vital to national security, public order, and public health. The Spanish authorities viewed Talgo as a strategic asset, given its access to critical information related to the country’s railway infrastructure. This context highlights the sensitive nature of the transportation sector in Spain and the heightened scrutiny that foreign acquisitions are subjected to.
