Germany’s MAN acquires 25-per cent stake in China’s Sinotruk for €560 million
15 Jul 2009
The world's third-largest heavy truck manufacturer, German commercial vehicle maker MAN SE, today said it had acquired a 25-per cent stake in Chinese truck manufacturer Sinotruk, for €560 million.
Munich-based MAN and Sinotruk Limited announced the signing of long-term strategic partnership agreements today, under which MAN will become a strategic shareholder in Sinotruk owning 25 per cent plus one share of its capital.
The total equity investment in Sinotruk, publicly-listed on the Hong Kong Stock Exchange, is €560 million and the price represented a 21 per cent premium to the 60-day trading average, said MAN.
MAN has now become Sinotruk's second largest shareholder after parent and state-owned China National Heavy Duty Truck Corp, built China's first heavy truck in 1960 and purchased the truck technology of MAN's subsidiary Steyr in1984.
Based in Jinan, in China's Shandong province, the maker of Howo and Gold Prince trucks is one of China's major manufacturer of heavy trucks, and sold more than 100,000 units last year, and has an approximately 20 per cent share of the of Chinese market, with 2008 sales of €2.5 billion.
MAN said the partnership brings together 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.