Chinese M&A

Weichai Power buys $929 million stake in Germany's Kion

Weichai Power is acquiring 25% of the German industrial truck maker and a majority stake in a subsidiary, heralding the largest Chinese direct investment in Germany to date.
<div style="text-align: left;">
Weichai Power’s chairman, Tan Xuguang, says the acquisition is an important step in the company’s five-year strategy to globalise (Imaginechina) </div>
<div style="text-align: left;"> Weichai Power’s chairman, Tan Xuguang, says the acquisition is an important step in the company’s five-year strategy to globalise (Imaginechina) </div>

Weichai Power, an automotive and equipment manufacturing group in China, has agreed to invest 738 million $929 million for a stake in German industrial truck maker Kion Group, which is already backed by KKR and Goldman Sachs Capital Partners. The transaction is the largest Chinese direct investment in Germany to date and accelerates the Chinese company’s course to gain much-coveted Western industrial know-how and win a foothold in the global market.

Under the agreement, Weichai Power will spend 467 million to acquire a 25% stake in Kion via a capital increase and the remaining 271 million for a 70% stake in Kion’s hydraulics business. Nomura is the sole financial adviser...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222