Sidenor Emerges as Spain’s Preferred Bidder for Talgo amidst Foreign Competition
The battle for control of Spanish train manufacturer Talgo has intensified, with Sidenor, a Basque steel company, emerging as the preferred bidder backed by both the central and Basque governments. This progress comes as foreign competitors, including a Polish state-backed entity and India’s Jupiter wagons, prepare to submit their offers before the February 14 deadline.
In a recent interview with Radio Euskadi, José Antonio Santano, Spain’s Secretary of State for Transportation, emphasized that Sidenor represents the “country commitment” and aligns with the government’s vision to keep Talgo rooted in Spain. “We are committed to ensuring that Talgo remains a company of the country,” Santano stated, reiterating the government’s stance against foreign takeovers.
This position is not new. Last summer, Spain blocked a takeover bid by Hungary’s magyar Vagon citing “national security reasons.” The government has since reinforced its anti-takeover measures, signaling its readiness to veto any foreign acquisition of Talgo.
The Sidenor Proposal
Table of Contents
Sidenor, led by President José Antonio Jainaga, aims to acquire a 29.9% stake in Talgo, currently held by the Trilantic Investor Fund. Jainaga has offered up to 4 euros per share, valuing the stake at approximately 150 million euros. However, Trilantic is pushing for a higher price, demanding up to 6 euros per share.Acquiring more than 29.9% would trigger a mandatory takeover bid for the entire company, a move Sidenor is keen to avoid. A full acquisition would cost over 500 million euros, a figure Jainaga deems unsustainable.
Foreign Competition Looms
Despite Sidenor’s strong political backing, foreign competitors are not backing down. The Polish government, through its state-owned entity Pesa, and india’s jupiter Wagons are reportedly preparing offers that could include a full takeover bid. These proposals pose a direct challenge to Spain’s anti-takeover shield, setting the stage for a potential showdown.
Government Support and Strategic Interests
Both the Spanish central government and the Basque Executive have thrown their weight behind Sidenor, viewing the acquisition as a strategic industrial and national project. Santano highlighted the alignment between the two governments, stating, “We are aligned with the Basque Executive to ensure Talgo maintains its roots in the country.”
The government’s support extends beyond rhetoric. Both administrations have expressed willingness to contribute financially, potentially entering Talgo’s shareholder structure to bolster Sidenor’s bid.
The Road Ahead
The process for submitting binding offers, overseen by PwC on behalf of Trilantic, concludes on February 14. Santano hinted that the final decision is imminent, stating, “We are in the last weeks or even days.”
As the deadline approaches, all eyes are on whether Sidenor can secure the deal or if foreign competitors will force Spain to invoke its anti-takeover measures once again.| Key Points | Details |
|————————————|—————————————————————————–|
| Preferred bidder | sidenor, backed by Spanish and Basque governments |
| Stake Offered | 29.9% of Talgo,currently held by Trilantic Investor Fund |
| Sidenor’s Offer | Up to 4 euros per share (150 million euros) |
| Trilantic’s Demand | Up to 6 euros per share |
| Foreign Competitors | Poland’s Pesa and India’s Jupiter wagons |
| deadline for Offers | February 14,2025 |
| Government Stance | Committed to keeping Talgo rooted in Spain,ready to veto foreign takeovers |
the coming days will determine the future of Talgo,a company that has become a symbol of Spain’s industrial and national pride. Will Sidenor prevail, or will foreign interests test Spain’s resolve? Stay tuned for updates as this high-stakes negotiation unfolds.
The Battle for Talgo: Sidenor vs. Foreign Competitors
Introduction
The race to acquire Talgo has intensified, with Sidenor, a Basque steel company, emerging as the preferred bidder backed by both the central and Basque governments. Foreign competitors, including a Polish state-backed entity and India’s Jupiter Wagons, are preparing their offers before the February 14 deadline. José Antonio Santano, Spain’s Secretary of State for Transportation, recently shared insights on the government’s stance and the ongoing negotiations.
Interview with José Antonio Santano
Editor: What makes Sidenor the preferred bidder for Talgo?
José Antonio Santano: Sidenor represents the “country commitment” and aligns with the government’s vision to keep Talgo rooted in Spain. We are committed to ensuring that Talgo remains a company of the country. This aligns with our broader strategy to protect critical national assets from foreign takeovers.
Editor: Can you elaborate on the government’s stance against foreign takeovers?
José Antonio Santano: Our position is clear. Last summer, we blocked a takeover bid by Hungary’s Magyar Vagon citing national security reasons. Since then, we have reinforced our anti-takeover measures to safeguard strategic industries like Talgo. We are prepared to veto any foreign acquisition that threatens our national interests.
Editor: What is the status of Sidenor’s proposal?
José Antonio Santano: sidenor aims to acquire a 29.9% stake in Talgo, currently held by the Trilantic Investor Fund. They have offered up to 4 euros per share, valuing the stake at approximately 150 million euros. However, Trilantic is pushing for a higher price, demanding up to 6 euros per share. Acquiring more than 29.9% would trigger a mandatory takeover bid,which Sidenor wishes to avoid.
Editor: How are foreign competitors influencing the process?
José Antonio Santano: Despite Sidenor’s strong political backing, foreign competitors like Poland’s Pesa and India’s Jupiter Wagons are preparing offers that could include full takeover bids. These proposals pose a direct challenge to our anti-takeover measures, setting the stage for a potential showdown.
Editor: What role is the government playing in supporting Sidenor’s bid?
José Antonio Santano: Both the Spanish central government and the Basque Executive are aligned in supporting Sidenor. We view this acquisition as a strategic industrial and national project. Beyond rhetoric, both administrations have expressed willingness to contribute financially, perhaps entering Talgo’s shareholder structure to bolster Sidenor’s bid.
Editor: What is the timeline for the final decision?
José antonio Santano: The process for submitting binding offers, overseen by PwC on behalf of Trilantic, concludes on February 14. We are in the final weeks or even days of this process. The coming days will determine the future of Talgo,a company that has become a symbol of Spain’s industrial and national pride.
Key Points
| Details |
|---|
| Preferred Bidder: Sidenor, backed by Spanish and Basque governments |
| stake Offered: 29.9% of Talgo, currently held by Trilantic investor Fund |
| Sidenor’s Offer: Up to 4 euros per share (150 million euros) |
| Trilantic’s Demand: Up to 6 euros per share |
| Foreign Competitors: Poland’s Pesa and India’s Jupiter Wagons |
| Deadline for Offers: February 14, 2025 |
| Government Stance: Committed to keeping Talgo rooted in Spain, ready to veto foreign takeovers |
Conclusion
The coming days will determine the future of Talgo, a company that has become a symbol of Spain’s industrial and national pride. Will Sidenor prevail, or will foreign interests test Spain’s resolve? Stay tuned for updates as this high-stakes negotiation unfolds.
