Chinese investors buy German firm for $1bn

KraussMaffei Image copyright AFP
Image caption The acquisition of the firm is the largest Chinese deal in Germany

A group of Chinese investors have bought one of Germany's largest machinery suppliers, KraussMaffei, for €925m ($1bn; £694m).

The investors include state-owned firm China National Chemical Corp (ChemChina) and investment firms AGIC Capital and Guoxin International.

KraussMaffei, which makes machinery for processing plastic and rubber, was owned by Canadian firm Onex Group.

The deal is the biggest acquisition by Chinese investors in a German company.

Chinese investors have recently been buying European firms, along with their technology and distribution networks.

Last year, ChemChina bought Italian tyre maker Pirelli in a deal valued at €7.1bn (£5.1bn).

Operations to stay in Europe

In a statement on its website, the German company said the operations would remain in Munich and Europe and it would add jobs with the acquisition.

It currently employs 4,500 people - 2,800 of those jobs are based in Germany.

Meanwhile, the chairman of ChemChina Jianxin Ren said the takeover of the 178-year-old firm would help the Chinese giant become a pioneer in achieving the "made in China" initiative.

"We are investing in the company's strong management team and its technological expertise, which we believe will benefit our Chinese subsidiaries," he said.

The deal is expected to be finalised in the first half of this year.

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