Luxshare Precision to Acquire Majority Stake in Leoni AG for Expansion in Auto Industry
TapTechNews September 19th news, the renowned automotive wiring harness manufacturer Leoni AG signed an equity sale agreement with China's Luxshare Precision on September 17. According to the agreement, Luxshare Precision will acquire 50.1% of Leoni Group's equity and 100% of its wholly-owned subsidiary LeoniKabel (referred to as LeoniK) with 525.41 million euros (TapTechNews note: currently about 4.142 billion RMB).
Leoni is a wholly-owned subsidiary of L2-Beteiligungs, registered in Nuremberg, Germany, mainly operating two core businesses: the Automotive Cable Division (ACS) and the Wire Harness System Division (WSD). The Automotive Cable Division is operated by Leoni's wholly-owned subsidiary LeoniK, while the Wire Harness System Division is operated by another wholly-owned subsidiary LeoniBordnetzeSysteme (referred to as LeoniB). LeoniB also has 4 subsidiaries, and these subsidiaries will be transferred to the name of LeoniK before the equity delivery to ensure the smooth progress of the transaction.
According to the agreement, Luxshare Precision will acquire 100% of LeoniK's equity through its subsidiary with 320 million euros and 50.1% of Leoni's equity with 205.41 million euros, and the remaining 49.9% of the equity will continue to be held by L2-Beteiligungs. After the transaction is completed, Leoni and LeoniK will be included in the consolidated financial statements of Luxshare Precision.
This acquisition marks another important measure of Luxshare Precision in the automotive business layout. As one of Apple's core suppliers, Luxshare Precision has continuously increased its investment in the automotive field in addition to the mobile phone and other consumer electronics businesses in recent years to open up a new growth curve. According to its medium and long-term goals, Luxshare Precision plans to become a global automotive parts Tier1 leading manufacturer within three five-year periods.
Luxshare Precision stated that this acquisition will help the company and Leoni achieve resource sharing, complementary advantages and strategic synergy, and quickly form the company's differentiated competitive advantage in the global automotive wiring harness field, providing more convenient and efficient vertical integration services for Chinese auto companies going overseas and overseas traditional auto companies.