In the early morning of January 26th, Beijing time, Reuters reported that China National Machinery Industry Corporation (SINOMACH) and France’s Fives Group are set to split the assets of German machine tool manufacturer MAG Group. The report, citing unnamed sources, suggests that the two companies are in advanced talks over the acquisition of different parts of the company.
According to insiders, SINOMACH is expected to sign an agreement next month to acquire MAG’s European operations. Meanwhile, Fives remains the sole bidder for the company’s U.S. division. This development marks a significant step in the ongoing restructuring of MAG, which has been under pressure due to financial challenges.
Earlier last year, Reuters had reported that MAG was considering selling the entire company for around €500 million or just its European business for €250 million. The group generates approximately €1 billion in annual revenue and employs around 3,500 people globally. In 2011, its EBITDA stood at €105 million, highlighting its once-strong financial position.
At the start of the bidding process, several Chinese firms also showed interest in acquiring parts of MAG. This reflects a broader trend of Chinese companies actively seeking out European firms to gain access to cutting-edge technology, brand reputation, and global distribution channels.
In recent years, such cross-border acquisitions have become more frequent. For instance, last year, Sany Heavy Industry, with the help of an industry investment fund, acquired 100% of German concrete machinery giant Putzmeister for €360 million. Similarly, Shandong Heavy Industries invested €700 million to secure a 25% stake in KION Group, a leading forklift manufacturer. Hebei Lingyun Industrial Group also made headlines by acquiring Keekert, one of Europe’s largest car lock manufacturers.
These deals underscore the growing influence of Chinese firms in the global industrial sector and their strategic focus on long-term growth through international expansion.
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