0.545 billion euros! German Bosch Motor Business Acquired by Chinese Company

"We have successfully acquired the motor business of Germany's Bosch Group, the world's largest automotive technology supplier. In the future, 'China Speed' plus 'Made in Germany' will make Zheng Coal Machinery occupy a place in the global high-end manufacturing market." On January 4, Jia Hao, deputy general manager of Zhengzhou Coal Mining Machinery Group Co., Ltd., who had just returned from Munich, Germany, said excitedly.

Zhengzhou Coal Mine Machinery Group Co., Ltd., formerly known as Zhengzhou Coal Mine Machinery Factory, was founded in 1958. It is a key project of the national "First Five-Year Plan" and gave birth to China's first hydraulic support. However, the development of enterprises is subject to a single product structure and is in urgent need of transformation and upgrading.

The German Bosch Group is the world's largest supplier of automotive technology. Its motor business accounts for 17% of the global market and has top customers in the automotive industry. Under the background of global industrial transfer, the cost-effective advantage of motor business in the Chinese market is gradually weakened, and it is urgent to introduce the local supply chain system.

In mid -2016, the Bosch Group announced that it was studying a strategic plan for the restructuring of the starter and generator business unit, including the search for partners or acquirers. Once the news was released, it attracted many global investment institutions and buyers. In the end, Zheng Coal Machinery won because of its industrial investment background, obvious synergy effect and feasible future planning. It reached an equity purchase agreement with Bosch Group in early May 2017, with a total transaction volume of 0.545 billion euros.

On December 31, 2017, in Munich, Germany, Zheng Coal Machinery completed the acquisition of the German Bosch Group's motor business. The motor business acquired by Zheng Coal Machinery this time includes start-stop motors and 48V weak hybrid technology. It is the world's leading energy-saving and environmentally friendly motor technology, which helps reduce the carbon emissions of the domestic automobile industry.

China's Henan state-owned listed company acquired the motor business of the old German industrial giant, which caused a lot of shock in the local area. Many German media reported on this one after another, calling it a model of Henan state-owned listed company's "going out" international operation.

"Zheng coal machine is the ideal partner of Bosch." Rolf Brand, a member of the board of directors of Bosch Group and chairman of the automotive and intelligent transportation technology business department, said that Zheng Coal Machinery has deep manufacturing capabilities and rich local experience, which will ensure that Bosch Motor's business accelerates technology research and development and fully expands the market.

Jiao Chengyao, Chairman of Zhengzhou Coal Mining Machinery Group Co., Ltd., said, "Zheng Coal Machinery is committed to becoming a world leader in the auto parts industry, and this acquisition marks an important step towards this goal. At the same time, our acquisition is of high-tech motor R & D and manufacturing assets, which will help upgrade Henan's high-end equipment manufacturing industry."

Yan Jianlai, deputy secretary-general of the China Society of Automotive Engineering, commented, "Overseas acquisitions have become an important way for China's leading auto parts companies to achieve leapfrog development. With Bosch's technology, Zheng Coal Machinery's expansion from coal mining machinery to auto parts will undoubtedly be smoother, and it will also open up a new path for the transformation and development of Henan's state-owned enterprises."