Ningbo Huaxiang to acquire a German auto parts company

Shanghai. September 29 (Gasgoo.com) - Ningbo Huaxiang, an auto parts company in Zhejiang province, announced today that the company plans to acquire a German auto parts company, Shanghai Securities Journal reported today.

The report did not disclose the name of the German company, but said the company has total assets of 260 mln euros; its sale revenue was 260 mln euros and net profit 25 mln euros in 2006.

The total value of this projected transaction will be about 1-1.5 billion yuan (US$133-US$200), the report said.

Huaxiang said the acquistion talks are still in an early stage and that no agreements have been reached in any details.

The acquisition, if agreed by the two companies, will have to win approvals from both Chinese and German governments before it can go ahead.
Huaxiang specialized in providing metal and non-metal sedan parts to OEMs, like Shanghai-VW, Shanghai-GM, FAW-VW, and FAW-Toyota.

Last month, Huaxiang signed a joint venture agreement with a Germany company named Schefenacker. Under the agreement, the two companies will each invest 50 mln yuan (US$6.65 mln) to start a JV called Ningbo Schefenacker Huaxiang Automotive Mirrors Company.