XCMG Machinery to acquire 51% of Xuzhou Xugong Heavy Vehicle for 821 million yuan

XCMG Machinery announced plans to acquire a 51% stake in Xuzhou Xugong Heavy Vehicle Co., Ltd. from Nanjing Xugong Automobile Manufacturing Co., Ltd. for 821 million yuan. The acquisition aims to strengthen XCMG's mining machinery business.

“This transaction will help the company establish a competitive advantage in complete and serial products for mining machinery.”webull.com

• 1 source
• webull.comXugong Machinery announced that it plans to acquire 51% of Xuzhou Xugong Heavy Vehicle Co., Ltd.'s shares held by Nanjing Xugong Automobile Manufacturing Co., Ltd. for 821 million yuan. After the transaction is completed, Heavy Vehicle will become a holding subsidiary of XCMG Machinery. This transaction will help the company establish a competitive advantage in complete and serial products for mining machinery, support the growth of the mining machinery sector, and help the company achieve the top three strategic goals of the global open pit mining machinery and equipment industry. The counterparty, Xugong Nanqi, promised that if the net profit accumulated by the target company up to the end of any fiscal year during the performance commitment period did not reach the agreed promised net profit, then Xugong NAC shall pay cash compensation in accordance with the agreement for the difference between the net profit promised by the end of the corresponding fiscal year during the performance commitment period and the accumulated net profit realized. Xuzhou Construction Machinery Group Co., Ltd., the controlling shareholder of the company, shall bear joint and several liability for Xugong Nanqi's performance compensation obligations under this agreement.Apr 18, 2025

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