Chinese Auto Supplier Launches Takeover Bid for Grammer

As expected, China’s Ningbo Jifeng Auto Parts Co. has launched a formal bid to acquire the 75% of Germany’s Grammer AG it doesn’t already own.

The two companies have been discussing the purchase since May. Jifeng Auto acquired a 25% stake in Grammer in 2017 and is offering to buy the rest of the interiors and seating supplier at €60 ($70) per share. The deal values the outstanding Grammer shares at great than €700 million ($820 million).

The deal will move ahead if investors representing 25% of the outstanding shares agree to the offer by July 23, according to the Financial Times.

Jifeng reiterates that it has given Grammer “extensive guarantees” that the German company would maintain a high degree of independence from its Chinese owner. Grammer also would continue to be led by its current management team.