The German heavy truck maker MAN unveiled on July 15 a major Chinese investment, saying it would buy 25% plus one share of the country's leading truck maker, Sinotruk.
The transaction, part of a "long-term strategic partnership," would involve a capital increase in the Chinese group and was worth 560 million euros (US$787 million) in all, a joint statement released by MAN said.
MAN would pay a 21% premium over Sinotruk's 60-day trading average on the Hong Kong Stock Exchange.
The deal combines "advanced technologies and engineering know-how developed by MAN in Europe and Sinotruk's existing manufacturing platform, local expertise and extensive sales network in China," the companies said.
MAN chief executive Hakan Samuelsson was quoted as saying that the German group's investment in Sinotruk "lays the foundation for the joint development of a new heavy truck series tailored to emerging markets."
Like competitors, MAN has suffered from the collapse of global markets for heavy trucks, although sales of its diesel motors and turbo chargers have been more stable.
MAN and the Swedish group Scania, both of which have Volkswagen as a major shareholder, have been the objects of merger rumours for some time. VW has reportedly favored a three-way tie-up that would also include its own Brazilian truck manufacturing unit.
Copyright Agence France-Presse, 2009
