Duties are piling up for the newly formed progressive coalition government in Spain. In addition to what will happen with the multiple open fronts it has in political and economic matters, another is added: how to deal with the arrival of foreign investment in especially important sectorsfor the country’s economy.
The last episode was starred by the Hungarian company DJJ, dedicated to the manufacture of trains, and which has set its eye on the Talgo company -a leader in the design, manufacture and maintenance of high-speed light trains-, led by Carlos de Palacio y Oriol and with the Trilantic fund as the largest shareholder. DJJ (Dunakesci Jarmü Javító) Last week, it expressed a “preliminary interest” in the Spanish company, betting on acquiring each share for five euros and thereby taking control of the Spanish company.
The current situation, with a government ‘in its infancy’, is very similar to what happened between Telefónica and the Saudi fund STC, both operations being of special importance for the government, which will have to study how to manage these situations in this new legislature.
Allied owners of Vladimir Putin
Furthermore, DJJ’s interest is certainly compromised, since links with the Hungarian government are attributed to him and Russian allies very close to Vladimir Putin’s entourage. Officially, the company offers proven experience in the market – it has been operational since 1911 – although its economic stability and, above all, the hands that manage it, are in question.
Transmasholding (TMH), of Russian origin, or Magyar Vagon, from Hungary, are the two top owners of DJJ. And this would not have much relevance if it were not for the fact that the first one was in the hands of Andrei Bokareva Russian oligarch and one of Putin’s close core, who was forced to get rid of the company after Western pressure and sanctions against Russia.
At the same time there is Magyar Vagon. Created in 2020 by Kristóf Szalay-Bobrovniczky – current Hungarian Minister of Defense -, and sold to the Solva II investment fund during 2022. Furthermore, from Hungary the interest in Talgo is attributed to András Tombor and Zsolt Hernádi, two great businessmen very close to the Hungarian president, Viktor Orban.
Talgo, main ‘support’ of Renfe
This interest stands out because the current moment in the railway market is focused especially on “high speed.” -a train can cost between 30 and 40 million euros-which is growing “at such a rate that manufacturers have long queues of orders for years to come,” say a large multinational in the sector.
Talgo Factory in Las Rozas, Madrid
Furthermore, in Spain this market is booming after state liberalization and enormous competition between AVE, AVLO, Iryo and Ouigo. Talgo, for its part, closed contracts last month worth 1.9 billion euros, thus reaching historical highs (4.2 billion). This can be clearly seen in the high passenger demand, with 8.32 million passengers in the second quarter that has translated into a growth of 33% year-on-year, according to CNMC.
Due to all these factors, Talgo is currently in a sweet moment, closing unlimited contracts and establishing itself as Renfe’s main supplier. This can be verified with the Talgo and Bombardier 112 series, fundamental for AVLO trains, which during the last month of the year will provide the Ministry of Transportation with 30 units of the Talgo Avril.
