The planned acquisition of German industrial robot producer Kuka AG is going smoothly, according to Midea Group Co Chairman Fang Hongbo, a media report said Thursday.
Fang, who heads the appliance maker, spoke after Germany's European Union Commissioner Guenther Oettinge called on Kuka's majority shareholders to consider alternatives to Midea's bid earlier this week, suggesting that Kuka has strategic importance to Germany, domestic financial news website caixin.com reported on Thursday.
"The deal offers benefits for both countries, why stop it?" Fang said, according to the report.
Separately, German Economy Minister Sigmar Gabriel said on Tuesday he would welcome an alternative bid, according to Reuters. Also, government sources who declined to be identified said the German government will examine how critical Kuka's technology is for the digitization of industry, an economic priority for the government, Reuters noted.
Midea Group announced an offer on May 18 to increase its stake in Kuka to more than 30 percent, according to the company's website. The current stake is 13.5 percent. The company has offered 115 euros ($129) in cash per share of Kuka for a total cost equivalent to roughly 29.2 billion yuan ($4.44 billion).
Midea Group posted financial details of the bid on the website of the Shenzhen Stock Exchange on Wednesday, saying that the company received approval on May 27 from the National Development and Reform Commission, China's top economic planner, for an overseas bid.
Midea said it will use Kuka's expertise in industrial robots and automation to improve its efficiency while promoting automation solutions to other companies in the country. It also pledged to maintain Kuka's independence, media reports said in May.
