Sany Heavy Industry Pays over 2.6 billion to Merge the German "Elephant"

Sany Heavy Industry, whose headquarters are in Changsha city, confirmed on Jan 31 that Sany and its shareholders as the Chinese Credit Fund will jointly buy 100 percent of the shares for the global concrete mechanic giant Putzmeister. Also known as the "elephant", this is the first example of a merger between a German and Chinese small and medium major manufacturing industry.

According to the announcement from Sany Heavy Industry, its sub company Sany German Ltd. Co. will join the Chinese Credit Industrial Investment Fund (Hong Kong) and pay 360 million Euro to buy the shares of Putzmeister. Of this, Sany German Company will buy 90 percent, and the Chinese Credit Fund will buy 10 percent. Sany German company’s bill is 324 million Euros (about 2.654 billion yuan).

Putzmeister was founded in 1958 and was one of the most famous engineering mechanic industries whose market holding percent has always been at the top in the world. As the leader of the domestic concrete industry, especially in the concrete pump truck field, Sany is also one of the largest concrete mechanic manufacturing industries. These two companies worked together for the Japan earthquake and have always been the challenging opponents.

Xiang Wenbo, the president of Sany, said that both companies gained a lot through the cooperation agreement. The global selling network that Sany has established offers distinctive competitive privileges for Putzmeister and guarantees its development vista. At the same time, Sany will get skillful products made in Germany, which fulfills the combination of products and also strengthens the global selling and service network.

According to Xiang Wenbo, after the merge, Aichtal in Germany will be the head of Putzmeister, which will be the new head of the overseas Sany concrete mechanic industry. Putzmeister will keep up its highly independent daily operation. Sany Heavy Industry will still stress the opening up of the domestic medium and low market. Putzmeister will keep its position in the high market. The original CEO Norbert Scheuch will be the Sany Heavy Industrial CEO. At the same time, Xiang Wenbo promised that he would not fire the local staff.

Karl Schlecht, the founder of Putzmeister, said that it is an example of Chinese-German trade, and he was glad to give the "elephant" to Sany who holds the same operation faith. Karl has been employed as the senior consultant and the interest accumulated from the trade will be donated to the Karl Schlecht Fund.

This trade still needs the commitment of some other departments to meet the dealing conditions. The deal will be completed in the first season of 2012. The high level leader of Sany is confident about the commitment.