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Oct 26, 2023
Chinese manufacturer XCMG aims to climb up global market ladder
The largest acquisition and merger transaction in China's equipment manufacturing industry was recently approved by the China Securities Regulatory Commission. Xuzhou Construction Machinery Group Co.,
The largest acquisition and merger transaction in China's equipment manufacturing industry was recently approved by the China Securities Regulatory Commission. Xuzhou Construction Machinery Group Co., Ltd. merged with the controlling shareholder XCMG Co. Ltd.
XCMG has built a global market model with a mix of overseas plants, mergers and acquisitions and global research and development. The company's portfolio of products includes surface excavation, bridge construction equipment, dredger, cranes, concrete machinery, loaders, excavators, piling machinery and road machinery.
The company has a manufacturing base in Brazil, India and the United States and operates more than 20 overseas subsidiaries. Its businesses are available in more than 160 countries and regions.
With the merger, the company is in a position to become a significant player in the global construction equipment manufacturing market.
According to ChinaDaily.com, XCMG has specified its strategic targets of ranking first among Chinese equipment manufacturers by 2025 and second or first in the world by 2035.
The merger is said to be another significant step in the company’s overall strategy, which has included other acquisitions over the past several years.
Per statements on the company website and China Daily, XCMG Machinery issued shares to all shareholders of XCMG Co., Ltd. (17 companies including XCMG Group and XCMG Excavator Machinery) to absorb and merge XCMG Co., Ltd. The commission approved the transaction to issue the shares to merge and acquire the assets.
Through the merger and acquisition, all supporting assets of production such as excavation, concrete, mining machinery under XCMG Co., Ltd will be injected into the listed company XCMG Machinery as a whole.
The cost of the acquisition is listed as 38.686 billion Yuan. Upon completion, XCMG Machinery shares held by XCMG Co., Ltd. will be canceled and XCMG Group will be the controlling shareholder of the listed company.
Supporting assets, including excavation machinery, concrete machinery, mining machinery, tower cranes and others, will be injected into the listed company.