Chinese Eye German Machine Tool Group

Chinese companies are eyeing German machine tool group MAG, two sources close to the transaction said on Monday, in a sign appetite remains high among Chinese groups for the acquisition of German industrial know-how.

State-owned Shenyang Machine Tool (SMTCL) 000410.SZ confirmed it is in talks to acquire Goeppingen-based MAG, while two sources close to the situation said rivals such as Dalian (DMTG) TMTMAA.UL, Quier Machine Tools and YierMT Group are also looking at the asset.

Separately, private equity investors such as Triton and DBAG (DBAG.DE) are also looking at the group, which last year posted sales of 900 million euros ($1.1 billion) and employs 3,500, one source said.

"After a successful evaluation phase, we are in talks with a large number of qualified potential bidders from around the globe," a MAG spokesman said.

The companies and the private equity firms declined to comment.

Chinese companies have already this year scooped up a number of German groups to gain access to technology, brands and worldwide distribution.

In April, Xuzhou Construction Machinery Group (XCMG) agreed to buy a majority stake in privately-held machinery manufacturer Schwing, following a similar deal a few weeks earlier, when car parts maker Hebei Lingyun acquired car door latches specialist Kiekert.

In January, Sany Heavy Industry said it would buy Schwing rival Putzmeister in a 360 million euro ($443.1 million) deal, and LDK Solar invested in solar group Sunways .

http://www.reuters.com/article/2012/07/09/us-maggroup-china-idUSBRE8680NW20120709