AUGSBURG, GERMANY – As the company continues to strive towards its growth-centric goals, it now has another factor to consider in the business realm. China-based home appliance maker Midea, is in talks with KUKA to make a 4.5 billion euro, or roughly $5 billion USD, takeover bid on the company.
"We have set ourselves a goal of reaching a billion euros in sales by 2020. A partner who supports this strategy and provides us with better market access could be a considerable growth driver for Kuka," CEO Till Reuter told shareholders at the end of last month, according to Reuters.com.
Robotics maker KUKA is reportedly the latest, and biggest, German tech group to be the focus of Chinese buyers as China looks to move towards the status of a high-tech industrial hub, said Reuters. China currently has the biggest international market for industrial robots, with robotics sales rising 16 percent last year. Global sales were up eight percent.
Till Reuter disclosed at the company’s annual meeting that as KUKA was not actively looking for a partner, the company was not concerned with the question of a “white knight” situation should other prospective buyers arise. Siemens reportedly considered a bid for the company, but, according to anonymous sources, rejected the idea due to cost.
Reuters did note that German government officials will supposedly examine the critical nature of KUKA’s technology for the digitization of industry as an economic driver for the government, but will likely not intervene in the prospective transfer of ownership to China.
Midea first made its offer on May 18 but has yet to launch an official bid. KUKA’s two biggest shareholders, Voith and billionaire Friedhelm Loh, have not yet indicated whether the offer will be accepted.
Stay with AndNowUKnow as we continue to report on this prospective bid and change of robotics technology ownership.
