Luxshare Precision's $4 Billion Acquisition of Leoni Unconditionally Approved

　　ICC Information News  On January 6, the SAMR (State Administration for Market Regulation) announced the "List of Unconditionally Approved Business Concentration Cases from December 23 to December 29, 2024," which included the equity acquisitions by Luxshare Precision of Leoni Kabel GmbH (Leoni K) and Leoni AG (Leoni).

　　It is reported that this acquisition cost Luxshare Precision approximately RMB 4 billion. According to previous announcements, Luxshare Precision acquired stakes in Leoni AG, a well-known German automotive parts supplier, and its wholly-owned subsidiary Leoni Kabel GmbH for a transaction amount of €525 million, equivalent to about RMB 4 billion.

　　Leoni, originating from Nuremberg, Germany, was founded in 1917 and stands as a global leader in providing cable, wire, and harness system solutions. Its products are widely used in industries such as automotive manufacturing, telecommunications, and medical devices. In 2000, Leoni's wiring systems entered the Asian market. Currently, it has a China management center and three wholly-owned factories located in Jining, Penglai, and Shenyang Tieling, along with a joint venture factory in Langfang.

　　Leoni operates two core businesses under its umbrella: ACS (Automotive Cable Solutions) and WSD (Wire Harness System Division), with ACS mainly operated through Leoni K.

　　Despite being in a loss-making state, Luxshare Precision expressed that the acquisition aims to accelerate the globalization of its automotive business.

　　Netizens have commented that Luxshare Precision's timing on this acquisition is quite apt, given Leoni's strong technology in automotive wiring, which precisely fills Luxshare's gap in the automotive field.

　　Additionally, it's worth noting that according to the earnings forecast disclosed on October 26, 2024, Luxshare Precision expects its net profit attributable to shareholders for the whole year of 2024 to be between RMB 13.143 billion and RMB 13.691 billion, representing a growth of 20% to 25% year-over-year.