China Daily has reported that XCMG Construction Machinery Co, China’s largest manufacturer of construction equipment, has confirmed that China North Industries Group Corp will take over the company.
The agreement was signed between China North Industries and the government of Jiangsu province where XCMG is located. China North Industries will invest US$2.2 billion between 2011 and 2015 to build research and production bases for construction machinery and vehicles, optoelectronics and chemical engineering.
Mr Xu Xingyue, industry analyst at Greatwall Securities, said the acquisition will turn XCMG which is a local state owned enterprise into a central government led SOE, providing the company with sufficient funds for future development.
XCMG makes a variety of construction machinery including front end loaders, bulldozers, graders, excavators, cranes and fire fighting vehicles. In the meantime, XCMG is selling its Caterpillar joint venture assets for US$91.9 million as the 16 year cooperation comes to an end.
A spokesman for XCMG said earlier they had been scouting for a strategic investor after the Carlyle Group deal failed.
Source:
http://www.miningmagazine.com/panorama/chinas-xcmg-sells-out
XCMG acquired by China North Industries, sells CAT JV assets
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IBH
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Re: XCMG acquired by China North Industries, sells CAT JV as
Caterpillar has announced its is to acquire XCMG's 15.87% stake in the two companies' Chinese excavator manufacturing joint venture, Caterpillar Xuzhou Limited (CXL). The terms of the deal, which is subject to Chinese regulatory approval, have not been disclosed.
Full article:
http://www.khl.com/magazines/international-construction/detail/item56931/Caterpillar-to-fully-acquire-Chinese-joint-venture/
Full article:
http://www.khl.com/magazines/international-construction/detail/item56931/Caterpillar-to-fully-acquire-Chinese-joint-venture/