Gasgoo Munich- Bethel Automotive Safety Systems (603596) announced on Feb. 26 that it plans to acquire a 50.9727% stake in Yubei Steering System (Xinxiang) Co., Ltd. for no more than 1.121 billion yuan. The transaction will make Bethel Automotive Safety Systems the controlling shareholder, with Yuan Yongbin becoming the actual controller.
Image Source: Screenshot of the announcement
The transaction involves multiple parties. Bethel Automotive Safety Systems plans to sign share transfer agreements with shareholders Junhong Industrial Co., Ltd., Ningbo Fengyuan Equity Investment Partnership, Hefei Huaxinyun Automotive Electronics Investment Partnership, and Hefei Chantou High Growth No. 1 Equity Investment Partnership. Collectively, these parties hold the 50.9727% stake being acquired.
The parties agreed to value Yubei Steering at no more than 2.2 billion yuan, setting the transaction price at a maximum of 1.121 billion yuan. The sellers committed to ensuring Yubei Steering's net assets attributable to shareholders reach at least 930 million yuan by the end of 2025, with R&D expenses accounting for no less than 3% of revenue. As the 2025 audit is ongoing, the final pricing will be determined upon its completion.
Bethel Automotive Safety Systems supplies global automakers with chassis systems and body components. Through proprietary innovation, it has secured a leading position in mechanical braking, electronic control braking, autonomous driving, and lightweighting, backed by proprietary intellectual property and mature mass production capabilities.
Yubei Steering is a Tier 1 supplier specializing in the R&D and production of steering systems. It has solid profitability, a high-quality customer base, and deep technical expertise. Its core products — electronic power steering, hydraulic power steering, and steering components — are expected to generate significant synergies with Bethel Automotive Safety Systems's existing portfolio in technology, market reach, and scale.
Bethel Automotive Safety Systems stated that the partnership will integrate technical and resource strengths, expanding its automotive safety product line and enhancing its competitive advantage. The acquisition is expected to deliver solid economic returns and further improve profitability.
