Chinese conglomerate Midea has eventually won over famed German tech company Kuka, who specializes in industrial automated machinery, and have agreed preliminary terms thought to be worth around four billion euros.
A condition of the deal, however, is that the Chinese giant will refrain from restructuring the corporate organization of Kuka, allowing them to stay headquartered in Germany and keeping its jobs and factories in its existing locations.
Midea have also made assurances that under no circumstances will the takeover lead to Kuka being delisted.
The first offer by Midea was made in May and was a very high profile and unpopular case with certain elements in German political circles. Some members of the German parliament have recently switched sides as favourable conditions were written into subsequent drafts of the agreement which basically mean Kuka will be able to operate somewhat independently from its new Chinese owners and will be assisted greatly with expansion into the Chinese marketplace.
The last few months have seen a plethora of approaches by Chinese buyers to German companies specializing in industrial technology, Kuka being the largest firm in the sector to make a deal.
In a press release Kuka expressed their satisfaction with the 120 euro per share offer saying it was “very fair”. Experts in the field agreed.
Michael Lane, Global Co-Head of the Investment Management Division at Shizuoka Capital Wealth Management said the German tech firm would be able to “use Midea’s vast experience to expand into new areas whilst remaining at its core a wholly German company.”
Kuka’s major shareholders face important decisions. Mechanical engineering group, Voith, are thought to be offloading their 25 percent stake although they declined to comment on recent news reports.
The other main investor in Kuka, Friedhelm Loh, commented that his lack of a “blocking minority” in shares was untenable, hinting he would soon sell his 15 percent stake.
“I’m looking at all options available,” said Loh in a newspaper interview last week.
