Paul Hastings, King & Wood Mallesons, and German law firm Hengeler Mueller have advised Chinese automotive and equipment maker Weichai Power on its purchase of a 25 percent stake in KION, a material handling equipment manufacturer, and the acquisition of a 70 percent share in KION’s hydraulics business.
The 738 million euro ($931 million) transaction, which is expected to close in the fourth quarter this year, marks the largest Chinese direct investment into Germany to date.
The Paul Hastings team that advised Weichai Power was led by Frankfurt-based partners Christopher Wolff, Regina Engelstäder, Ali Sahin, Jan Gernoth (M&A), Jochen Scheel (Real estate), and Karl Balz (Capital markets).
Freshfields Bruckhaus Deringer and German firm Gleiss Lutz represented KION.
The hydraulics business will be operated and managed as an independent company called Linde Hydraulics. The partnership with Weichai Power is expected to strengthen its operations in European markets, while creating growth opportunities in the Asia-Pacific region.
“This partnership is an important step in our five-year strategy to globalise and expand our business activities into new markets and products,” said Tan Xuguang, chairman and CEO of Weichai Power, in a statement.
“Our products, regional market positions, and technologies complement each other perfectly,” said KION CEO Gordon Riske. “For KION, this strategic partnership is an important catalyst for strong future growth in Asia and China, in particular. This applies to both the industrial trucks and the hydraulics businesses, which will significantly benefit from Weichai Power's expertise in the field of engines and drive technology.”
Kanishk Verghese is North Asia journalist at ALB. Follow us on Twitter: @ALB_Magazine.
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