In the early hours of January 26, Beijing time, Reuters reported that sources have revealed a deal between China National Machinery Industry Corporation (SINOMACH) and France's Fives Group to split the assets of Germany's MAG Group, a well-known machine tool manufacturer. The agreement marks a significant development in the ongoing restructuring of the company.
According to insiders, SINOMACH is set to sign a deal next month to acquire MAG’s European operations, while Fives remains the sole bidder for the company’s U.S. division. This move reflects the growing interest from Chinese firms in acquiring European industrial assets to gain access to advanced technology, brand reputation, and global distribution channels.
Reuters had previously reported that MAG was seeking to sell the entire company for around €500 million or just its European operations for €250 million. With annual revenue of approximately €1 billion, MAG has a strong presence in the global machinery sector. In 2011, the company generated an EBITDA of €105 million and employed around 3,500 people worldwide.
Initially, several other Chinese companies also showed interest in acquiring parts of MAG, highlighting the trend of Chinese firms aggressively pursuing foreign acquisitions. This strategy has become more pronounced in recent years as Chinese companies seek to strengthen their competitive edge on the global stage.
In 2022, Sany Heavy Industry partnered with an industry fund to acquire 100% of German concrete machinery giant Putzmeister for €360 million. Meanwhile, 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 the largest car lock manufacturers in Europe.
These acquisitions underscore the continued momentum of Chinese investment in European industrial sectors, driven by the desire to enhance technological capabilities and expand international market presence.
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