(Yicai Global) Jan. 29 -- Conglomerate Hailiang Group has agreed to pay EUR119 million (USD136.2 million) for European copper plants owned by Germany's KME, one of the world's largest manufacturers of copper and copper alloy products. The Chinese company's shares gained.

Hailiang will acquire KME's three copper alloy rod plants in Germany, France and Italy, and two copper tube plants and assets in Germany and Spain, the Shaoxing, Zhejiang province-based company said in a statement yesterday. The final cost of the deal will be based on the net assets and working capital on the day of delivery.

Set up in 2001, Hailiang has acquired JMF, Luvata and Bede Copper, and secured rich returns from mergers and acquisitions. Between 2013 and last year, the company's compound growth rates for sales, revenue and net profit attributable to the parent company reached 26.7 percent, 25.3 percent and 26.1 percent, respectively. Meanwhile, the global copper pipe market saw sales grow 3.1 percent.

Through the deal the company, whose core business is copper processing, will acquire the manufacturing technology for high-grade copper alloy rods, helping it rapidly increase its share of Europe's high-end market via the KME brand, the statement said.

Shares of Hailiang [SHE:002203] jumped 3.7 percent today to close at CNY7.76 (USD1.15) each, while the benchmark Shenzhen Component Index fell 0.5 percent.

Formed in 2007, KME's underlying assets include copper tube and copper rod factories in Germany, Italy, France, Spain and other countries. Its main customers are in the major European markets. The firm dominates the European high-end copper alloy rod market with a share of about 17 percent.