In the past few years, the "marriage" of companies in the engineering machinery industry has been nothing new. It might be a combination of strength, or a huddle. Today we're going to count the "marriage" events in the industry over the years.
A trilogy of concrete machinery company acquisitions that shocked the world
Compared with Europe and America, China's engineering machinery industry started relatively late. In terms of the engineering machinery of all kinds, there was no brand that was famous in the world at first. However, since 2008, China's engineering machinery enterprise Zoomlion, Sany heavy industry and Xugong group have continuously acquired Italy's CIFA, Putzmeister and Schwing of German. The acquisitions of the concrete machinery companies shocked the world and laid a foundation for China's becoming the champion in concrete machinery industry throughout the world.
01 Zoomlion's acquisition of CIFA
In September 2008, Zoomlion, combined with Hony, Goldman Sachs, Mr Darling funds, completed the acquisition of CIFA in Changsha. All the companies formally signed acquisition agreement; Zoomlion accomplished a full takeover of CIFA in form of cash. Zoomlion has also become the world's largest manufacturer in concrete machinery.
Zhou Qiang, governor of Hunan province and the deputy secretary of Hunan provincial party committee, said during the signing ceremony: the successful cooperation between Zoomlion and CIFA would have a profound impact on deepening economic and trade cooperation between Hunan and Italy. He also expressed that Hunan would vigorously support the cooperation between the two companies, create a benign environment for the development of the enterprises, and support enterprises to further expand their international market, so as to gain more shares in the field of concrete machinery in the world. He also expressed his hopes that the cooperation between Zoomlion and CIFA would serve as a successful example of Chinese enterprises' success in overseas mergers and acquisitions. In this way, they could further enhance the understanding between Hunan and Italy, expand cooperation fields and achieve more new cooperation fruits.
02 Sany's acquisition of Putzmeister
On January 21, 2012, the German Aichtal - Putzmeister holdings limited ("Putzmeister") and Sany heavy industry co., LTD. ("Sany"), as well as Citic industrial investment fund (Hong Kong) consulting co., LTD. ("Citic") signed a acquisition agreement. Sany, along with Citic--a small stakeholder, completed a full takeover of putzmeister.
Liang Wengen, the founder and chairman of Sany group, said: "after the merger, Putzmeister and Sany will jointly create a new global leader in concrete pump equipment manufacturing. Putzmeister will remain its independent brand and own its own management team in Sany. We are looking forward to working closely with the outstanding executive team of Putzmeister.”
03 XCMG’s acquisition of Schwing
Germany time on July 6, China's largest leading company in engineering machinery industry--XCMG and the global leader--Schwing held a ceremony for their cooperation.
Xuzhou engineering machinery group co., LTD acquired Schwing, for gaining the international market of medium and high-end concrete complete equipment. The success of the acquisition will greatly enhance the core competitiveness and overall strength of XCMG in this field and promote its rapid development. It will also be a positive impetus to push the technology, quality, product development and other aspects to reached the international first-class level. XCMG will actively explore the international market and set up its brand in complete sets of equipment manufacturing.
Liu Gong's acquisition of HSW's engineering machinery business projects
On the evening of January 31, 2012, Liu Gong issued an announcement that it had signed the final acquisition agreement with the polish engineering machinery company HSW on the engineering machinery business projects. So far, the company has completed the acquisition of all the engineering machinery business projects of HSW. Luo Guobing, assistant of Liu Gong's President and the general manager of international marketing, said in an interview: “This is the final part of the acquisition, which means, from that day on, HSW totally belongs to Liu gong.”
So far, this is the first privatized project in Poland which is participated by Chinese company, the largest Chinese investment project in Poland and also the biggest overseas investment project for Liu Gong. Luo said to reporters: “After the acquisition, the products of bulldozer of HSW continue to be launched worldwide. Our pursuit of establishing a supply base for European market is also achievable.”
Weichai Power's acquisition of Kion with 738 million euros
On August 31, 2012, Weichai Power Co.,Ltd, shorted as Weichai Power, is a listed subsidiary of Shandong heavy industries Co.,Ltd. It signed a cooperation agreement with German industrial forklift group, Kion group, in Wiesbaden, Germany. It acquired Kion group and its subsidiaries in 738 million Euros ($923 million), which is the largest direct investment by a Chinese company in Germany by far.
Tan Xuguang, chairman of Weichai power, said that the cooperation was an important part in the company's strategic plan to implement the global strategy, expand new market as well as develop new product business in the next five years.
Zoomlion's acquisition of Chery heavy industries with $2.1 billion
On August 20, 2014, Zoomlion, Hony investment and Chery heavy industries jointly announced the signing of the equity transferring agreement among the three parties. Zoomlion bought 1.8 billion shares of Chery heavy industries with 20.88 billion yuan, accounting for 60 per cent of the total. Hony invested 696 million yuan to acquire 600 million shares of Chery heavy industries, accounting for 20 percent of the total. The acquisition marks that Zoomlion's strategy to expand agricultural machinery business officially accomplished. This is also the largest agricultural machinery acquisition in China. Zoomlion claimed it would use the acquisition to enter the agricultural machinery industry and form a new profit growth point under the development of urbanization .
Sany and Parfig have formally completed the equity delivery
On May 15, 2014, Sany announced that the company had completed the equity delivery with the Austrian company Parferg, realizing the cross-shareholding. The company has a 10% stake in Parfiag through an indirect wholly-owned subsidiary. The stake has been registered in the district court of Salzburg, Austria, and has been allowed to float on the Vienna stock exchange. Palfing, through its wholly owned subsidiary PalfingerSLSHoldingPteLtd owns a 10% stake in Sany car hoisting machinery co., LTD, which has been approved by the Ministry of Commerce, foreign exchange administration and industry and commerce department in China.
CEO of Palfing Herbert said: "This cross-shareholding has not only deepened our strategic cooperation, but also laid a solid foundation for our future development. It is safe to say that this is a win-win cooperation. I believe we will have more cooperation projects in the future, and our cooperation scale and scope will also expand.”
Zoomlion's acquisition of M-TEC, the first brand in dry-mix mortar equipment manufacturing
On December 25, 2013, Zoomlion held a press conference in Beijing Shangri-la hotel and announced that the company formally signed and acquired M - TEC company--the first brand in dry-mix mortar equipment manufacturing, which is located in Neuenburg, German--on December 20.
This acquisition is another big overseas acquisition of Zoomlion and another practice under the overseas strategic guidance of Zoomlion's "fission + fusion = globalization". Though the acquisition, Zoomlion will strengthen its advantage in new businesses, such as dry-mix mortar, and intensify it's leading position in concrete machinery industry. Zoomlion will become the first brand of dry-mix mortar equipment manufacturing through grafting and utilizing M-TEC technology.
Shantui merges the crane business of Manitowoc
On January 24, 2013, the signing ceremony was held in Shandong province. Zhang Xiuwen, chairman of Shantui Engineering Machinery Co., Ltd., and Mr. Dargino, executive vice President of the Manitowoc crane group, attended the ceremony and signed the agreement.
Tan Xuguang, chairman of Shandong heavy industry group, said at the signing ceremony: “This cooperation with Manitowoc is not only a major event in the global process of Shandong heavy industry group; it is also a big event for the development of China's engineering machinery industry. This has a driving effect in accelerating the development of both Shandong heavy industry group and Manitowoc company. Meanwhile, this is another important international cooperation achieved by the leading company of Shandong heavy industry group in the field of automobile crane, after Weichai’s acquisition of Ferrari company and Weichai power's recombination with keao. ”
From the examples above, it is easy to see that although the development of engineering machinery industry is suffering its "down times", the "marriages" between engineering machinery enterprises though acquisition, merger and cooperation is reliable as it strengthens the companies’ ability and offer more chances for their success.