A consortium of investors including China National Chemical Corp. (ChemChina) agreed to buy KraussMaffei Group for 925 million euros (US$1 billion), including debt.
It could be the largest Chinese takeover of a German company ever, The Wall Street Journal reported.
In recent years, ChemChina has been on an overseas acquisition spree.
Last year, it agreed to a roughly US $7.7 billion deal to buy Italian tire maker Pirelli & C. SpA and is nearing shareholder approval to complete that deal.
The acquisition of KraussMaffei, a maker of equipment that processes plastics and rubber, would rank as the biggest outbound investment from China in Germany, figures from data provider Dealogic show.
The group of investors acquiring KraussMaffei includes private equity firm AGIC Capital and Chinese state fund Guoxin International Investment Corp., a statement from AGIC Capital said.
KraussMaffei’s owner is Canadian private equity firm Onex Corp., which acquired the business in 2012 for 568 million euros.
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