Will Spain give Poland its railway giant? Warsaw is looking for ways

Luc Williams

Poles interested in Talgo

Poles have been listed among potential buyers for several weeks. In mid-January, the Spanish portal El Confidencial reported that PFR, which controls the largest manufacturer of railway rolling stock in Poland, had concluded an agreement with Societe Generale to finance the acquisition of shares in Talgo. However, the Polish side did not confirm to PAP that the agreement had been concluded.

The Spanish do not want to leave the company to foreign hands

Spain’s Transport Minister Oscar Puente said at the beginning of January that he wanted to close the sale of almost 30 percent. shares in Talgo by the end of January. However, the government in Madrid intends to maintain the Spanish character of the company, which is why the most desirable offer is the Basque company Sidenor, the leading steel producer in the country.

However, the government does not exclude the participation of foreign entities, but only from minority positions that “maintain the company’s decision-making capacity and its industrial future in Spain.”

The Prime Minister of Spain is favorable to Tusk

In turn, according to El Confidencial, the Polish government’s offer is expected to be positively perceived by Spanish Prime Minister Pedro Sanchez, who has good relations with Donald Tusk.

In the scenario of Sidenor purchasing the shares, the sale amount remains an issue because shareholders will not agree to less than five euros per share.

Talgo actions and the blockade of the Hungarians

After news of the PFR agreement with Societe Generale, Talgo shares increased by over 6% at the end of last week, but the price still remains below four euros. This is what Sidenor is supposed to offer, one euro less than the blocked Hungarian offer.

On Tuesday, the ABC daily reported that Talgo is finalizing an agreement with DJJ, a subsidiary of Magyar Vagon (MAV), a Hungarian manufacturer of railway rolling stock. It is intended to help the Spaniards “due to the accumulation of orders for various European railway operators”, mainly from Germany and Denmark.

Previously, the state-dependent Ganz-MAVAG consortium, in which MAV has 55 percent. shares, made an offer to take over Talgo, but it was blocked by the government in Madrid for “national security” reasons.

Agreement between Pesa and Talgo

The Polish Pesa, controlled by PFR, signed an agreement with Talgo in Berlin in the second half of September on cooperation in the production of high-speed trains. The agreement assumed the combination of technological solutions and experienced teams of both companies to jointly offer high-speed vehicles both in Poland and other neighboring countries.

Pesa is the largest manufacturer of railway rolling stock in Poland. Pesa trains and trams run in all regions of Poland and most large cities, as well as in several European countries. Pesa trams are used, among others, by: by residents of Warsaw, Kiev and Sofia. Its vehicles transport passengers, among others: German railways DB, Italian Trenitalia, Czech Drahy and PKP Intercity use them.

From Madrid Marcin Furdyna (PAP)

About LUC WILLIAMS

Luc's expertise lies in assisting students from a myriad of disciplines to refine and enhance their thesis work with clarity and impact. His methodical approach and the knack for simplifying complex information make him an invaluable ally for any thesis writer.