Talgo Assures Employment and Industrial Capacity in Spain Amidst Hungarian Takeover Bid
Talgo has assured that its "red lines" in the ongoing takeover bid by the Hungarian Magyar Vagon for the Spanish manufacturer remain unchanged, prioritizing employment and industrial capacity in Spain, maintaining headquarters and management in Spain, and preserving ownership of patents.
In a statement, Talgo’s president, Carlos Palacio, highlighted that the company’s income will come mainly from the international market in the coming years, with a focus on European countries, the Middle East, and North Africa, and in the high-speed and long-distance segments.
Record Revenues and Net Profit
In 2023, Talgo achieved record revenues of 652 million euros, a 39% increase from the previous year, and net profit of 12.24 million euros, almost ten times more than the previous year’s net profit of 1.44 million euros.
In the first quarter of this year, Talgo reported a net result of 10.4 million euros, almost five times the figure for the same period in 2023.
Order Book at Historic Highs
Talgo’s order book ended 2023 at historic highs, with 4,223 million euros, of which more than 2,100 million correspond to "demanding" markets such as Germany and Denmark.
CCOO Union Demands Industrial Plan
The CCOO union has demanded an industrial plan for Talgo for more than five years, coinciding with the meeting, after having met with the main shareholder of the Hungarian consortium Magyar Vagon, Andras Tambor.
Government’s Ruling Pending
Once Magyar Vagon presented the documentation of the operation to the Ministry of Economy, the Government had three months to analyze the project and give its approval or not. The process is now expected to be closed at the end of July or beginning of August if there are no new requests for information.
The National Securities Market Commission (CNMV) is also analyzing the operation, although it will not make a statement before the Government does so.