China's Shandong Heavy Industry Group on Monday signed a 738 million euro ($928 million) accord to buy stakes in German forklift maker Kion Group and its hydraulics business, state media said. Weichai Power, the automotive and equipment manufacturing unit of state-controlled Shandong Heavy Industry, will pay 467 million euros for a 25 percent stake in Kion itself, the official Xinhua news agency reported.
The unit will spend another 271 million euros for a 70 percent stake in Kion's hydraulics business as part of the deal, it said. The deal is expected to help Shandong Heavy Industry expand into the international market. "This partnership is an important step for our global expansion into new markets and products," Tan Xuguang, chairman of Shandong Heavy Industry and chief executive officer of Weichai, said in a separate statement. Under the deal, Weichai will also raise its stake in Kion to 30 percent in the future if the German firm successfully goes public, Xinhua reported.
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