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CHINA Acquisitions
midea moves on kuka robots
Today, Bey Critical confirmed reports that Midea will invest in purchasing a larger share in German robot-maker KUKA. The Wall Street Journal yesterday hinted that sources close to the decision had confirmed the home appliance giant's plans to invest up to 4.4 million EUR to become the largest shareholder of KUKA robots, in what will become one of the largest unsolicited approaches of a foreign company by a Chinese buyer.
Midea Moves on German Robot Maker
May 18, 2016
Sources working on the deal told BC this morning that Midea is currently organising the necessary documents in order to qualify for a permit which would entitle them to purchase more shares in the company.
In February, Midea increased it's stake in KUKA to over 10.2%, becoming the company's second-largest shareholder. The latest bid represents an even greater committment to automation for companies in South China's Pearl River Delta, where Midea is already leading the charge to fully automate production lines across the region.
According to the WSJ's sources, Midea is considering lifting its stake in Kuka to above 30%, but doesn’t necessarily seek to gain more than 50% or buy Kuka altogether. However, speaking this morning to a member of the Midea team, it seemed as though Midea may be looking for more than just a controlling interest in the company.
According to the Financial Times, Midea has offered 115 EUR cash per share, despite KUKA's stock closing at 96.99 EUR per share on Tuesday, valuing the company at 4.57 billion EUR.
We believe that a larger shareholding strikes the right balance between an independent KUKA while also putting both companies in a positon to drive further growth through collaboration, especially in China.
Paul Fang, Chairman and CEO of Midea
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