Read more: Leaving the dragon? Chinese investment in Germany Midea-President Paul Fang said the investment will create long-term value for both companies. Wednesday`s statement said that by signing the agreement, Midea had demonstrated its full commitment to Kuka`s sites and personnel and had expressly committed not to change current global staff or cause closures or relocations. Zhang WeiWei, an economist at Shanghai`s Fudan University and an influential voice in Chinese government circles, said in an interview with Deutsche Welle that European countries should not worry about Chinese investments like Kuka`s. The prospect of taking kuka from a Chinese buyer has raised concerns among leaders of Chancellor Angela Merkel`s government. Economy Minister Sigmar Gabriel is leading an accusation to find an alternative offer from a European candidate, a search that has not yet resulted in an offer. To allay fears of his approach, Midea said he would not seek an agreement to control or rob the shares. When evaluating the offer, the Board of Directors not only considered whether the price was re-desirable and how the legitimate interests of employees and customers, for example, should be safeguarded, but also assessed the strategic logic of the transaction. According to the Board of Directors, Midea`s commitment supports the existing growth strategy. The main drivers are the Chinese market, Industry 4.0 and the development of activities in the fields of logistics and service robots. Midea is committed to helping KUKA grow its business in China, for example by improving market access.
As part of the agreement, Midea KUKA will also support strategic growth projects such as downsizing in research and development (R&D), developing existing R&D sites and investing in digitalization. In addition, a cooperation between KUKA and Midea in the field of logistics and the launch of commercial activities in the field of service robots. As part of the agreement, valid for 7-1/2 years, Midea has undertaken not to undertake any corporate reorganization of Kuka. Augsburg, 28 June 2016 – KUKA AG has signed an investment contract with Midea that commits Midea to provide significant assurances by the end of 2023. These guarantees include the assurance of maintaining sites and jobs, the commitment to KUKA`s existing strategy and the independence of the board of directors, counterparty data protection agreements and the assurance not to pursue a control or delisting contract. Augsburg, 28 June 2016 – KUKA AG has signed an investment contract with Midea that commits Midea to provide significant assurances by the end of 2023. This, in turn, led to constructive negotiations on an investment deal that overcame opposition from Kuka`s board of directors and the supervisory board, some German shareholders and politicians. The agreement implied obligations to maintain the management and financing of the company independently, to maintain Kuka`s headquarters and employee base in Germany and not to relax the business. . . .