China's Midea in $5B bid for robot maker Kuka
Chinese home appliance maker Midea Group made an offer Wednesday to buy German factory robot manufacturer Kuka AG, the latest bid by a Chinese investor to gain control of cutting-edge German industrial technology. The 115 euro per share offer values Kuka at around 4.5 billion euros ($5.07 billion) and represents a premium of 36 percent to Kuka's share price of 84.41 euros at close on Tuesday. Shares in Kuka rose by over 30 percent on the news. Kuka is one of the world's largest producers of industrial robots and a poster child of Germany's drive to upgrade its manufacturing sector to master the industrial internet. It is the latest in a series of German industrial groups to be targeted by Chinese buyers as the world's second-largest
economy tries to make the transition from a low-cost factory location into a high-tech industrial hub. Midea said it wanted to keep Kuka's management intact and not delist the German company. Midea said it aimed to expand Kuka's know-how in robotics for general industry and logistics applications and open doors for better access to Chinese markets. Other Chinese investment in Germany this year includes an agreement in January by a consortium led by ChemChina to buy
industrial machinery manufacturer KraussMaffei Group for about $1 billion. In 2012, China's Sany Heavy Industry bought German concrete pump maker Putzmeister for $698 million, while
Weichai Power took a 25 percent stake forklift truck maker Kion in 2012. Midea said it had a 13.5 percent stake in Kuka and was seeking to become the largest shareholder by raising its stake beyond 30 percent.
economy tries to make the transition from a low-cost factory location into a high-tech industrial hub. Midea said it wanted to keep Kuka's management intact and not delist the German company. Midea said it aimed to expand Kuka's know-how in robotics for general industry and logistics applications and open doors for better access to Chinese markets. Other Chinese investment in Germany this year includes an agreement in January by a consortium led by ChemChina to buy
industrial machinery manufacturer KraussMaffei Group for about $1 billion. In 2012, China's Sany Heavy Industry bought German concrete pump maker Putzmeister for $698 million, while
Weichai Power took a 25 percent stake forklift truck maker Kion in 2012. Midea said it had a 13.5 percent stake in Kuka and was seeking to become the largest shareholder by raising its stake beyond 30 percent.