(Yicai Global) May 3 -- Germany's Robert Bosch GmbH has agreed on a merger with a Chinese firm.
It will transfer to it its subsidiaries and relevant sub-sectors in the electrical machinery field, including starter motors and generators (SG), for USD594 million (EUR545 million).
The buyer, Zhengzhou Coal Mining Machinery (Group) Co. [SHA:601717] (ZCMM), will further advance its auto components business through this deal, which will be instrumental in enhancing its industry presence, it said yesterday. Bosch is the world's largest auto parts supplier, with almost 7,000 employees in 14 countries and regions across the globe. As traditional business sectors, Bosch listed its SG businesses in the strategy adjustment plan it outed in 2015, which considered seeking new partners or buyers for it.
As a manufacturer of coal mining equipment, ZCMM is caught at a transitional business juncture and faces a price slump in the coal industry. The company acquired an auto parts manufacturing enterprise for USD320 million (CNY2.2 billion) last year. ZCMM is positioned to bring sustainable industrial development ideas and long-term internationalized development direction to employees. ZCMM believes the transferred SG businesses will confer reinforced competitive power amid a new corporate architecture. The deal still awaits approval from German regulators and officials, Bosch management board member Dr. Rolf Bulander said in a news release.