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Central and Basque governments unblock the purchase of 30% of Talgo by Sidenor

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SRO Saudi Talgo 350. (CC BY SA) FLYAKWA-Wikimedia Commons. Cropped image.

SRO Saudi Talgo 350. (CC BY SA) FLYAKWA-Wikimedia Commons. Cropped image.

The central and Basque governments have reached a key agreement to facilitate the purchase of 29.8% of Talgo by the Basque consortium led by Sidenor.

This decision, as announced by the lehendakari Imanol Pradales after he met with President Pedro Sánchez in La Moncloa, allows the Sepi’s participation in the operation to be “definitively channelled.” Finally, of the 150 million loan, Finkatuz will provide half, and the other half will be provided by the state entity, with the commitment not to take a stake in Talgo’s capital.

The pact comes after tensions between the two governments over changes in criteria regarding the conditions under which Sepi would enter into the operation—a fundamental condition imposed by the banks for the refinancing of Talgo’s debt of more than € 400 million.

Talgo shares, which were down 10% year-on-year, have responded positively to the announcement, rising nearly 2% on the stock market. The purchasing consortium plans to move the company’s headquarters from Las Rozas (Madrid) to the Basque Country, thus consolidating its roots in the region.

Nevertheless, there are doubts that the operation will proceed due to Sidenor’s liquidity and financing issues. Some sources suggest that the Polish company Pesa is preparing to launch a new takeover bid.

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