A PYMNTS Company

Spanish Train Maker Talgo Receives Merger Offer from Czech Rival Skoda

By  |  July 16, 2024

In a significant development within the European rail industry, Spanish train manufacturer Talgo announced on Tuesday that it has received a merger proposal from Czech competitor Skoda. This offer arrives just four months after Hungarian consortium Ganz-Mavag launched a public tender to acquire all Talgo shares.

Unlike the Ganz-Mavag bid, which included a financial component of 619 million euros ($674 million) in cash, Skoda’s proposal is a “business combination and industrial merger” with no immediate economic offer. Talgo has requested detailed information from Skoda to assess whether this new proposal could surpass the value of Ganz-Mavag’s offer, according to a statement from the Spanish company.

The Spanish government, recognizing Talgo as a strategic asset, has indicated that it will scrutinize the proposed deal carefully. This scrutiny underscores the importance of Talgo in the national and European rail sectors, as it is renowned for its advanced train technologies and substantial contributions to rail transport infrastructure.

Source: Reuters