FAG Transfers Stocks to Chinese Group
Successful Conclusion of Two-and-a-Half Years’ Negotiations
SCHWEINFURT, July 10, 2005. The Chinese SGSB (ShangGong Group) has become the new majority stockholder of Bielefeld-based Dürkopp Adler AG through a German subsidiary. On June 30 FAG Kugelfischer, Schweinfurt, transferred its block of stocks to the Chinese company, as had been agreed upon in a sales contract signed in October last year.
FAG Kugelfischer GmbH, a member of the Schaeffler Group (Herzogenaurach), decided to sell its interest in Dürkopp Adler for fundamental considerations. “Being a traditional bearing manufacturer and automotive supplier, the fields of sewing technology and materials handling systems don’t come under our core competences,” explained Dr. Jürgen M. Geißinger, President and CEO of the Schaeffler Group. “For this reason, we cannot offer Dürkopp Adler adequate support in this particularly difficult industrial environment.”
By contrast, both parties may significantly benefit from the new situation. SGSB gains knowhow, a brand with a high worldwide reputation and German quality workmanship. In return, Dürkopp Adler can take advantage of ShangGong’s infrastructure especially in Asia. “This is the right strategic step to gain a rapid foothold in the future market of China,” underlined Geißinger.
Negotiations with the Chinese company started more than two-and-a-half years ago. In October last year, the sales contract between FAG and SGSB was signed. Since then the deal underwent a series of formal and bureaucratic approval processes, both at a local and national level. This is because the case was a precedent: For the first time a foreign public company was acquired by a Chinese public company.
FAG Kugelfischer GmbH held a 94.9 percent majority in Dürkopp Adler AG, which offers solutions in sewing technology and materials handling systems with some 1,800 employees worldwide. SGSB employs a workforce of more than 3,200 and is one of the largest sewing machine manufacturers in China.
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