(Yicai Global) Oct. 12 -- Zhengzhou Coal Mining Machinery Group Co. [SHA:601717] (ZMJ) plans to contribute USD356 million (EUR300 million) to acquire a stake in a motor manufacturing company under the German automobile components giant Robert Bosch GmbH.
The Henan-based group said Wednesday that it will set up an investment company in Luxembourg with two investment partners. It will be tasked with the acquisition of Robert Bosch Starter Motors Generators Holding GmbH, the starter motor and electric generator subsidiary of Robert Bosch.
The deal is worth EUR545 million. ZMJ will chip in EUR300 million. One partner will cough up EUR80 million and the other will shell out EUR60 million. They will raise the remainder via financing. ZMJ is carrying out relevant negotiations with several banks.
Robert Bosch GmbH is the world's largest supplier of automotive technologies, with businesses covering gasoline systems, automotive chassis, electrical drives, starter motors and engines. It has 275,000 employees, including 21,200 employees from 11 subsidiaries and nine joint ventures in China.
ZMJ acquired the Chinese auto parts supplier ASIMCO Technologies Ltd. in March as part of its development strategy to focus on both coal mining machinery and auto parts. After acquiring Robert Bosch Starter Motors Generators, ZMJ will further expand its auto industry presence.