Sany Heavy in deal for Austrian lifting gear firm
Building machinery maker signs memorandum of understanding for 10 per cent of Palfinger
Sany Heavy Industry, China's largest listed construction machinery maker, plans to pay €108 million (HK$1.13 billion) for 10 per cent of Austrian firm Palfinger.
The deal, under a memorandum of understanding signed this week, will also result in Palfinger investing €110 million for a 10 per cent stake in Sany's two lifting machinery subsidiaries, Sany said yesterday. Palfinger is one of the world's leading lifting machinery makers.
The final contracts, to be drafted in a few weeks, will require the approval of Chinese regulatory authorities, Sany Heavy's board and Palfinger's supervisory board, Palfinger's website said.
Sany Heavy is a Shanghai-listed subsidiary of Sany Group, China's biggest construction machinery conglomerate. It is controlled by Liang Wengen, who was listed by Forbes as China's richest man in 2011.
Xiang Wenbo, president of Sany Heavy and Sany Group, said: "Together with Palfinger, we can develop the globalisation of Sany."
Hubert Palfinger, deputy chairman of the supervisory board of Palfinger, said: "We are happy to have a strong partner as the second largest shareholder."