(Yicai Global) Oct. 17 -- Jiangsu Riying Electronics to will spend EUR1.77 million (USD195 million) to acquire two German micro auto switch makers, who are tier 1 suppliers of auto giant Volkswagen, to extend its business to Europe.

 The Changzhou Jiangsu province-based electric auto parts maker will acquire a 49 percent stake in both EMS Elektromechanische Schaltsensoren and its foundry MST Mikroschalttechnik through direct cash payment and share issues, it said in a statement last night.

The company is just a passive investor and will not involve itself in the daily operations of its two new Bösel, Germany-based subsidiaries, it said.

Other major clients of the of the new units are Daimler-Benz, BMW, Ford Motor, Toyota and General Motors, the announcement added

Riying Electronics shares [SHA:603286] closed at CNY15.37 (USD ), down 1.28 percent, after opening up 4 percent, but were unable to sustain its momentum.

Editor: Ben Armour