Media: Europe opposes Chinese companies’ acquisition of robotics companies for fear of technology outflow

File photo: KUKA

British media: Europe opposes Chinese takeover of GermanyRobotCompanies worry about technology exodus

Core tip: German member of the European Parliament, Marcus Feiber, told the Financial Times reporter: “We really need to think carefully about whether we are willing to hand over such an important company to the Chinese, or try to keep it in European hands. . I’m worried that because of these kinds of deals, cars in the future will no longer be produced in Stuttgart and Wolfsburg, but in China.”

　　Reference News Network reported on June 15 A Chinese company’s bid to buy a German Robot maker is facing growing political opposition in Berlin and Brussels, fearing that the deal would put some of Germany’s most importantindustryTechnology passed to the Chinese.

According to a report on the website of the Financial Times on June 13, Chinese home appliance maker Midea Group launched a 4.5 billion euro bid to acquire Kuka Robotics Group last month. The KUKA Group produces robots used by automakers — such as Audi and BMW — as well as by U.S. aircraft maker Boeing.

However, politicians worry that if the Midea-KUKA cooperation goes ahead, technology seen as a core element of Germany’s “fourth industrial revolution” will end up in the hands of the Chinese.

The KUKA Group is an important player in the “Industry 4.0” movement to digitize industrial production processes and create fully automated networked factories.

Marcus Feiber, a German member of the European Parliament, told the Financial Times: “We do need to think carefully about whether we are willing to hand over such an important business to the Chinese, or try to keep it in European hands. I am worried Thanks to such deals, cars of the future will no longer be produced in Stuttgart and Wolfsburg, but in China.”

He said the KUKA Group should be acquired by a group of technology companies such as Switzerland’s ABB Group, creating a pan-European entity on the principles of aircraft maker Airbus.

These concerns are accentuated by what is believed to be an inherent imbalance in China’s business relationship with Germany. Critics say Beijing will never allow foreigners to invest in such strategically important companies.

German Chancellor Angela Merkel touched on the issue during a weekend trip to Beijing. She called on China to open up its markets to Western investment. “We also want the Chinese side to implement the principle of reciprocity,” she said.

Authorities have been trying to block Midea’s takeover. Deputy Prime Minister Sigmar Gabriel said this month that efforts were being made to “find alternatives”.

A spokesman for Gabriel’s economy ministry said on the 13th that no alternative proposal has been formally proposed so far, “but if there is, we will be happy.”

In an interview with a newspaper last month, Gunter Oettinger, Germany’s European Commissioner in Brussels, suggested that other major shareholders of Kuka Robotics could launch an alternative bid, as could another European company. “A European acquisition may be a better option,” he said.

However, Gu Yanmin, vice president of Midea Group, said the proposed takeover was very beneficial for KUKA, and that it would be a “great success” in China. “There is an urgent need for robots here, and the potential for growth is huge,” he told the German newspaper Handelsblatt.

Handelsblatt reported on the evening of the 13th a possible solution to the current impasse: Kuka only holds 49% of the shares, and another powerful German shareholder remains on the board. Such an outcome would be acceptable to both the German government and KUKA CEO Thiel Reuter, the newspaper said.

The background to the dispute is that China is seeking Western technology to help it transform from manufacturing and heavy industry to services and consumption.

To this end, Chinese investors are buying frenzy in Europe, especially Germany. Chinese companies have bid for 25 German companies this year, with a total deal value of $9.1 billion, according to Dirockey. In 2014, that figure was $2.6 billion.

According to a report by Ernst & Young in February this year, Germany was the most attractive destination for Chinese investment in Europe in 2015. Chinese companies acquired 36 German companies, compared with only two in 2009.

The list price for such deals is also rising steadily, the report said. The largest transaction between China and Germany in 2015 was the acquisition of German private bank Hauck-Aufhauser Bank by Fosun Group for 210 million euros.

However, this year China National Chemical Corporation bought German locomotive maker Krauss-Maffei Group for about $1 billion, and Beijing Enterprises Group Co. offered 1.44 billion euros for Germany’s EEW waste-to-energy company. At the time, it was the largest Chinese acquisition of a German company. However, Midea Group’s acquisition of KUKA may go a step further. (Compiler / Zheng Guoyi)