China National Machinery Industry Corporation bids for German machine tool manufacturer MAG
Release time：
2017-07-20
In the early morning of October 6, Beijing time, Reuters quoted informed sources as saying on Friday that China National Machinery Industry Corporation (SINOMACH) had submitted a takeover offer to German rival MAG Group, showing that Chinese companies are Interest in mergers and acquisitions in Europe continues.
In the early morning of October 6, Beijing time, Reuters quoted informed sources as saying on Friday that China National Machinery Industry Corporation (SINOMACH) had submitted a takeover offer to German rival MAG Group, showing that Chinese companies are Interest in mergers and acquisitions in Europe continues.
According to two sources, Japan ’s Komatsu and two private equity firms have also proposed to acquire MAG's European operations, and seven other companies have proposed to acquire McGonaga's Americas operations.
A MAG spokesperson confirmed that the company is now in talks with potential acquirers and "expected to complete negotiations in the fourth quarter."
MAG has previously hired Goldman Sachs to assist it in finding buyers, hoping to sell the entire company for more than 500 million euros (about 645 million US dollars), or sell its European business for at least 250 million euros.
MAG's annual revenue is approximately 1 billion euros. Last year, the company's earnings before interest, taxes, depreciation and amortization (EBITDA) were 105 million euros. The company employs approximately 3,500 employees worldwide.
Prior to this, several Chinese companies, including Shenyang Machine Tool Group (5.89, 0.11, 1.90%), had also intentionally acquired the MAG business, but have now withdrawn from the bidding.
Since this year, Chinese companies have acquired a number of German companies, including Sany Heavy Industry (Weibo) (9.60, 0.27, 2.89%) and concrete machinery giant Putzmeister. Hebei Lingyun has acquired the world's largest car. Lock manufacturer Kiekert and Shandong Heavy Industries acquired 25% stake in forklift manufacturer Kion.
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