Sidenor Expresses Interest in Acquiring Part of Talgo Amid Ongoing Industry Challenges
Talgo, the renowned train manufacturer, confirmed on Wednesday that it has received a letter of interest from the industrial group Sidenor regarding a potential acquisition of all or part of its capital. The announcement comes in light of recent rumors indicating that Sidenor's president, José Antonio Jainaga, is looking to invest in Talgo, signifying a possible pivotal moment for the company.
In their statement to the National Securities Market Commission (CNMV), Talgo disclosed that Sidenor had expressed its intent to consider either a total or partial acquisition of Talgo's share capital. This news follows a noticeable increase in Talgo's stock prices, which surged on Wednesday, a continuation of the upward trend that began earlier in the week when initial reports suggested a revitalization for the company's industrial capacity. Shares showcased a remarkable rise of 4.9%, reaching a value of 3.64 euros each, climbing back to early September levels, although still shy of the 5 euros per share offered by the Hungarian group, Magyar Vagon, for a complete acquisition.
Jainaga's consideration of joining Talgo as an industrial partner introduces a new avenue for the company’s future operational strategy. Sidenor, headquartered in Basauri, Bizkaia, is specialized in the production of special long steels and also acts as a supplier of calibrated products within the European market. With production facilities spread across the Basque Country, Cantabria, and Catalonia, along with commercial offices in countries like Germany, France, Italy, and the United Kingdom, Sidenor is a substantial player in the industrial sector.
The quest for an industrial partner has been a primary objective for Talgo in recent months, especially considering the potential investments required to ensure not only the company's viability but also to manage upcoming orders. The Basque institutions, including the Basque Government and the Álava Provincial Council, have confirmed their collaborative efforts in supporting the search for a suitable partner that could facilitate this critical project aimed at bolstering Talgo's future in the competitive rail market.
With nearly 700 employees based at its Rivabellosa plant in Álava and approximately 2,500 direct employees across Spain, Talgo has a significant workforce that plays a vital role in the country's rail manufacturing landscape. The developments surrounding Sidenor's interest potentially represent a turning point for Talgo, amidst a challenging economic backdrop for the industry as it seeks to enhance operational capabilities and secure its position in the market.
Related Sources: