China National Chemical Corporation, known as ChemChina, has agreed to buy KraussMaffei, one of Germany’s leading machine makers, for €925 million ($1 billion).
The deal is the biggest acquisition of a German company by Chinese investors.
Chairman Jianxin Ren said in a joint statement on Monday that ChemChina was buying KraussMaffei, owned by Canadian private equity firm Onex, for its technological expertise.
KraussMaffei, which is not related to German weapons maker Krauss-Maffei Wegmann, makes injection molding machinery, presses, robots and other machines and is headquartered in Munich. It had sales of €1.1 billion in 2014 and currently employs around 4,500 people globally, with 2,800 in Germany.
“[The purchase] will benefit our Chinese subsidiaries and position the chemical machinery business of ChemChina, which builds and sells equipment for the rubber and chemical industry, to become a pioneer in achieving the “Made in China 2025” program which aims to enhance Chinese industry,” Mr. Ren said.