Talgo Explores Acquisition Talks with Sidenor Amidst Strategic Interest
Talgo's board of directors has initiated negotiations with the industrial group Sidenor to evaluate a potential transaction that may involve acquiring either a portion of the company’s share capital or its entirety. This decision, communicated to the National Securities Market Commission (CNMV), follows an official expression of interest from Sidenor, observing ongoing speculation regarding its president, José Antonio Jainaga, potentially joining Talgo.
Last week, Talgo confirmed receiving Sidenor's expression of interest, suggesting that Sidenor is considering acquiring all or part of the company’s capital. This development was highlighted in a letter from Sidenor that was submitted to Talgo and conveyed through the CNMV on Thursday.
Sidenor, based in Basauri, Bizkaia, is known for producing specialty long steels and supplying calibrated products across Europe. The company operates production facilities in the Basque Country, Cantabria, and Catalonia, and maintains commercial offices in several countries including Germany, France, Italy, and the United Kingdom.
The search for a suitable industrial partner has been ongoing for several months in the Basque region, where Talgo operates a plant in Rivabellosa, Álava, employing nearly 700 workers, not including temporary personnel and auxiliary company employees. Overall, Talgo employs around 2,500 individuals across Spain.
In light of this situation, the Basque Government and the Álava Provincial Council have confirmed their collaborative efforts in seeking a partner to stabilize and advance Talgo's industrial future. Their joint aim focuses on promoting initiatives that will secure necessary investments to ensure not only the company's continuity but also its capability to fulfill upcoming orders.
The discussions with Sidenor mark a significant step for Talgo, which has been facing challenges in recent times. The potential deal, whether partial or complete, could aid in reestablishing the company's growth trajectory and enhance its strategic position within the rail manufacturing sector.
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