Robotics maker Kuka AG may sell to the Midea Group, sparking discussion about whether German-based company Kuka could have found a better deal.
China-based Midea Group, which specializes in appliances, offered €115 ($130) per share, with a minimum acceptance rate of 30 percent. The offer would come to about $5 billion in total.
According to the report from the Wall Street Journal, Chinese investors are aggressively acquiring German business targets. A high-profile maker of industrial robots and automated factory systems, Midea is a significant economic power in Germany and possesses critical intellectual property. As of June 1, Germany’s Economics Minister Sigmar Gabriel pushed to form a European organization with the goal of finding a competitive bid within Europe.
German Chancellor Angela Merkel said that no option was being ruled out, and that the government wanted a solution that would “satisfy both sides.”
Midea CEO Paul Fang addressed fears that his company would “dominate Kuka or delist the business,” saying that the partnership between the two companies would “allow us to benefit from the growth opportunities across different industries in China.”
The offer would preserve Kuka’s existing workforce and keep the company headquarters in Augsburg, Germany.
Currently, Midea owns a 13.5 percent stake in Kuka.
On Thursday, Kuka said that it would submit a review of Midea’s offer to shareholders. Chief Executive Till Reuter responded positively to the potential offer at a shareholder meeting in late May.
Kuka shares closed at €108 ($121) on Thursday.
